July saw an increase in second charge loans
A new report from the Finance and Leasing Association (FLA) shows that July saw a 29% increase in the number of second lien loans that were agreed.
In numerical terms, new second mortgages agreed in July amounted to 3,127, equivalent to a total value of £146million. This represents a 45% increase in value compared to the same month of the previous year.
Speaking to Mortgage Strategy, the FLA’s Director of Mortgage Finance and Consumer Affairs, Fiona Hoyle, said this sector of the mortgage market had seen its highest total new business for a single month since September 2008.
She then added that:
“Of the total number of new agreements written in July, 54% were for consolidating existing loans, 15% were for home improvements, and a further 26% were for both loan consolidation and home improvements. “
Second mortgages may be an option for those struggling to repay, which may be a factor given the current cost of living crisis. However, the fact that property improvements account for so many of July’s second-charge loans suggests the increase isn’t just a matter of people needing help with loan repayments and mortgage fees. subsistence.
Advisors who have completed CeMAP courses and are employed in the industry may consider the aftermarket as another possible way to expand their customer base and obtain other jobs so they can grow their business.