"Total new consumer credit in the UK is expected to grow by 1.4% in 2017 as a whole, a more modest rate than in recent years."
This continues the downward trend seen over the past few months. Second charge mortgage new business volumes decreased by 22% in October and 6% in November and December compared with the same months in 2015.
The industry expected October's data to be a 'blip', including Fluent for Advisers who reported that new business continued to grow during October and November, in contrast to the FLA figures.
Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said: “The latest research from Oxford Economics on behalf of the FLA shows that total new consumer credit in the UK is expected to grow by 1.4% in 2017 as a whole, a more modest rate than in recent years.”
Harry Landy, Sales Director at Enterprise Finance, commented: “The specialist lending sector as a whole is growing, and we are seeing an increasing number of investors exploring the flexibility specialist financing can offer. FCA regulation and the introduction of the MCD have positively influenced the market, improving choice and quality for consumers. Intermediaries are also becoming more aware of the benefits of second charge mortgages and specialist lending, advising their clients on the speed and flexibility these can offer. As such, we are confident that the market will continue to grow even further in the months ahead.”
