"Consumer confidence has recovered from last month’s blip, and the second charge market is continuing its upward trajectory"
This reverses the 2% fall in second charge new business volumes in September following six consecutive months of growth.
The data also shows growth of 10% in consumer finance new business in October, compared with the same month last year.
Credit card and personal loan new business together grew by 13% compared with October 2016, while retail store and online credit new business increased by 3%.
Fiona Hoyle, Head of Consumer and Mortgage Finance at the Finance & Leasing Association, said: “The second charge mortgage market reported growth in October, with new business up 20% by value and 19% by volume compared to the same period in 2016. The number of new second charge mortgages was 1,880."
“The growth in consumer finance new business so far in 2017 has been in line with expectations. The latest research from Oxford Economics on behalf of the FLA suggests that total UK new consumer credit will grow by 4.1% in 2017 overall and by 1.2% in 2018.”
Harry Landy, Managing Director at Enterprise Finance, commented: “Consumer confidence has recovered from last month’s blip, and the second charge market is continuing its upward trajectory that saw six months of consecutive month-on-month growth from March to August. Whether it is to fund renovations, help a family member with a deposit, or consolidate household debts, we’ve seen more borrowers taking out second charge mortgages – many at a higher value – and this has led to a strong year for the sector.
"We are cautiously optimistic that this increase will continue into next year, but it is important that brokers are aware of the range of specialist financing options around, and can therefore provide tailored advice to borrowers.”
