Second charge mortgage lending down
Second charge mortgage new business fell by 6% in terms of value in January 2017, compared to January 2016, said the Finance and Leasing Association (FLA).
And the number of second mortgages arranged was down 11% over the same period.
A total of £69m was lent as second charge mortgages in January 2017, bringing the total for the 12 months to January to £869m, according to the FLA.
Against the tide
The fall comes despite a rise in wider consumer finance new business in January, which was up 10% compared to a year earlier – boosted by credit and and personal loan lending.
Geraldine Kilkelly, head of research and chief economist at the FLA, said: “There was new business growth across most of the main consumer finance products in January, suggesting that consumer confidence remained relatively robust at the start of 2017.
“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.”