This is the fourth consecutive month of growth following six months of decline starting in August 2016.
The number of new second charge mortgages in the first half of 2017 was 10,401, 11% higher than in the same period in 2016.
Overall, consumer finance new business grew 7% in June compared with the same month last year, and saw growth of 4% in the second quarter of 2017 overall.
Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said: “In the first half of 2017, consumer finance new business grew by 5% compared with the same period in 2016, in line with modest single-digit growth expectations for the year as a whole.”
Harry Landy, Managing Director at Enterprise Finance, commented: “The second charge market has performed strongly recently, with four consecutive months of growth highlighting the sectors robustness. Consumers and investors have been hit by rising inflation, and this hasn’t been helped with the ongoing political and economic uncertainty following the General Election and current Brexit negotiations.
"However, this doesn’t seem to have deterred borrowers looking for alternative routes of financing. With the market continuing to accelerate, it’s hugely important that awareness and availability of second charge loans improves among brokers to help them secure the most suitable financing for their clients. Doing so will help the sector to continue to thrive.”
