The second charge mortgage market saw a rise in volume and value in May – making it the third consecutive month of growth, according to the Finance and Leasing Association. The value of the second charge market was £88 million in May, up 27% on the previous year.
There were over 1800 new second charge mortgages taken out in the month of May, a rise of 30% on the previous year. Second charge mortgages allow you to borrow a lump sum which you repay alongside your existing mortgage over a fixed term. Many people use them to raise money as an alternative to a re-mortgage.
Second charge mortgage new business has ebbed and flowed over the past year, which was to be expected following the significant changes brought about by the market’s transfer into MCOB in March 2016 plus the Brexit vote. Customers are borrowing for a wide range of reasons, including renovating or extending their current property.
The value of second charge business was over £900 million in the year to May.
Despite the ongoing political and economic uncertainty – a result of the snap general election and Brexit vote – it’s encouraging to see the market continue to grow.
The second charge market has come a long way over the last 5 years and now is seen as a very serious alternative to a standard re-mortgage. The product range has increased significantly and now caters for the majority of needs.
If you are looking to raise a secured loan please do get in contact and one of our advisers will be happy to guide you.