"Total UK new consumer credit is expected to grow at a more modest rate in 2017 as a whole than in recent years."
This continues the downward trend seen over the past few months. Second charge mortgage new business volumes decreased by 11% in January and by 6% in November and December 2016.
The industry expected Q4'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 fall in new business in February was the first monthly contraction since January 2015. The latest research by Oxford Economics, on behalf of the FLA, suggests that total UK new consumer credit is expected to grow at a more modest rate in 2017 as a whole than in recent years.”
Harry Landy, Sales Director at Enterprise Finance, commented: “The second charge market had a slow start to the year, as today’s figures attest. However, we are expecting to see confidence building and growth returning in the coming months. The industry needs to work together to raise awareness of the benefits second charge mortgages can offer. This is particularly important when we engage with intermediaries so they are equipped to best advise their clients.”
