The volume of 2nd charge home mortgage business finished in March was 10 percent down on in 2015 with 2,745 brand-new contracts throughout the month, according to figures from a trade association.
Data from the Finance and Leasing Association (FLA) revealed that the worth of business likewise dropped, with a 12 percent year-on-year decrease to £123m.
Despite this, the FLA said March saw the greatest level of business for the year up until now.
In the 3 months to March, both the worth of brand-new business and the variety of brand-new contracts saw simply a 5 percent decline to £333m and 7,446 contracts.
For the 12 months to March, activity was up when compared to the very same duration a year earlier.
The worth of brand-new business was 24 percent greater at £1.5bn, while the variety of brand-new contracts increased 17 percent to 33,384.
Fiona Hoyle (visualized), director of customer and home mortgage financing and addition at the FLA, said: “March saw the 2nd charge home mortgage market report its greatest level of brand-new business up until now this year and the very first quarter ended with brand-new business volumes just 5 percent lower than in Q1 2022.
“The distribution by purpose of loan in March showed 58 per cent of new agreements were for the consolidation of existing loans, 14 per cent for home improvements, and a further 22 per cent for both loan consolidation and home improvements.”
She included: “As always, customers who are concerned about meeting payments should speak to their lender as soon as possible to find a solution.”
Nick Jones, director of Freedom 4 Intermediaries, the expert 2nd charge home mortgage circulation department of broker company Freedom Finance, said: “Second charge home mortgage brand-new business fell in March however 12-month volumes are up considerably following exceptionally strong need in 2015. With March taping the greatest level of brand-new business in the 2nd charge market this fiscal year, it appears like need is returning as we approach completion of the Bank of England’s rates of interest treking cycle.
“Second charge home mortgages stay an appealing proposal for numerous property owners who are checking out the most proper method to raise capital to combine financial obligation, financing home enhancements or attain a variety of goals through the equity they have actually built up in their property. Given repaired rate home mortgages have basically tripled over the previous 18 months, remortgaging might no longer be a practical alternative for individuals on low fixed-term rates which might offer a tailwind for the 2nd charge market over the coming months.
“While second charge mortgage rates have risen – as they have throughout the secured and unsecured lending sector – shopping around between different providers is vital for borrowers and intermediaries to secure the products that will be most appropriate to meet individual circumstances and objectives.”
Shekina is the industrial editor at Mortgage Solutions. She has more than 4 years’ experience in the B2B publishing market, with previous markets consisting of the accounting, animal, funeral service, hospitality, retail and jewellery trades.
She presently reports on existing occasions in the home mortgage market and communicates with monetary customers to produce sponsored material.
Follow her on Twitter at @ShekinaMS
