There were 1,945 new second charge agreements in January this year, up 18% year-on-year, the Finance and Leasing Association (FLA) has found.
In the three months to January there were 6,015 new second charge agreements, up 18% from the previous year. In the 12 months to January there was 23,829 new agreements, up 8% year-on-year.
The value of new second charge business was £85m in January 12% more than the year before and £264m of new business in the three months to January, up 13% year-on-year.
The second charge mortgage market has made an impressive start to 2019, with new business up 12% by value and 18% by volume in January, compared with the same month in 2018. This is a strong performance, and as most of the market is broker-introduced, it also suggests that knowledge of second charge mortgages among clients is growing very quickly.
One of the big appeals of a second charge loan is the costs and speed of completion. On average a second charge loan is completed within 15 working days, this does of course vary dependant on the complexity.
There is little doubt second charge lending has just had its most successful year, the good thing is lenders have taken this on board and reacted positively to meet the challenges.
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