Second charge loans increasing rapidly

The number of new second charge loans taken out in June was 1,960, up 195% on the same month last year, according to the latest figures from the Finance and Leasing Association (FLA).

The value of second charge business in June was £91m, equating to a 236% increase in value compared to May 2020.

For the three months to April, 5,853 second charge new agreements were arranged, worth £260m.

However, for the full year to June 2021 19,903 new second charge loans were completed, worth a total of £833m, down 24% and 21% respectively.

The second charge mortgage market continued its recovery in June as new business grew for a third consecutive month.  In H1 2021, new business volumes increased by 21% compared with the same period in 2020, and we expect further growth during the second half of this year.”

FLA figures for second charge borrowing in April showed a rise of 176% on the same month last year.

Need some assistance?

If you think this form of loan could assist you in your future planning it is particularly important to ensure you get the correct advice. There are many lenders offering numerous second charge loans, please call one of our independent advisers who will be able to guide you in the correct direction.