The second charge market continued its strong start to the year with its highest level of activity in more than 10 years in March.
According to data from the Finance and Leasing Association (FLA) 2,392 new second charge loans were taken out in March, the most since October 2008.
This was up 31% on March last year and a similar uptick was seen in the value of new business, as that rose 25% to hit £108m for the month.
The data rounds-up a strong first three months of 2019 for the second charge market with January new deals up 18% and the value of business up 12%.
February witnessed even stronger growth, with new agreements rising by 24% and the value of these growing 20% compared to the same month last year.
Strong first quarter
Overall, January to March saw 6,500 deals completed worth £292m, up 25% and 19% respectively on the same period in 2018.
The trend also shows through in the annual figures with 24,812 agreements, up 13%, worth £1.116bn, up 9%, completed in the 12 months to March.
Who can benefit’s from a second charge loan behind the main mortgage?
- You are in a tie-in period and do not want to pay a large penalty
- You need funds very quickly
- You have an interest only mortgage and do not wish to re-mortgage to capital & repayment
Why you might apply for a second charge loan?
- You wish to consolidate your outstanding loans and credit cards
- You wish to carry out home improvements
- You are looking to inject cash into your business
- You have had adverse credit and wish to speak to a company who will understand your situation
- You are self-employed and wish to raise finance for one of the above
Can we help?
If you would like more information on how this type of loan could help you please do contact one of our advisers.