Very encouraging growth

The finance and leasing association has released data that shows the second charge market expanding on a yearly basis for the sixth month in a row.

In December 2018, there were 1,702 new agreements valued at a total of £80m, growth of 13% and 6% against December 2017, respectively.

This is some way off November’s data, however, when 2,319 new agreements valued at £99m provided a 21% rise for both metrics. In the 12 months leading to December 2018, 23,529 new agreements were recorded at £1.07bn in value. This is a 7% upward change in new agreements within that time frame, and a 4% increase in the value of new business.

December saw the market report its sixth consecutive month of growth, contributing to solid single-digit new business growth in 2018 as a whole. The second charge mortgage market is expected to see further single-digit new business growth in 2019 overall.

It is believed that the sector is more likely to grow at a measured pace rather than a “boom & bust” situation, backed by the increasing numbers of advisers who are now aware of where secured loans can sit in their advice process.

If you look closely at the positives a secured loan can offer a borrower, then it is easy to see why this form of lending is being welcomed by all.

Lender choices

The last 12 months has seen a substantial increase in the number of loan types available to a property owner. Not only this but new lenders have entered the market which has to be good for the long-term growth and stability of the second charge industry.

The broker

These days due to the vast choices open to the prospective borrower it is vital they get a professional adviser to point them in the right direction. With so many loans and re-mortgages available anybody contemplating taking out a loan would be very well advised to seek broker advice.

Can we assist?

If you would like to discuss your future and present borrowing needs, please do make contact and one of our qualified advisers will be pleased to help.