Poll
H1 2013 saw £209m of second charges
The latest second charge mortgage statistics from the FLA have now confirmed that secured lending levels in the first half of 2013 hit £209 million.
According to the latest FLA new consumer credit lending data, June’s secured lending figures increased by 52 per cent on last year’s figures with a £38 million month.
Secured lending in 2013 has only dipped under £30 million in one month so far, emphasising the strong growth of the industry and culminating in the £209 million lent up to June in 2013.
In the 12 months up to June 2013 FLA members have lent a total of £384 million, which represents a 27 per cent growth on the previous 12-month period.
The number of new second charge mortgages in June increased by 37 per cent (to 1,222). The average advance was also 14 per cent higher than in Q2 2012, at £30,486.
As one can see in the table below there has been constant increasing growth in second charge mortgages this year, with higher increasing percentages of figures compared to the figures in the respective periods of the previous year.
Lending hit the £40 million mark in May 2013 for the first time in over 4 years.
Table 2: Second charge mortgages (H1 2013)
H1 2013 |
(Month) 2013 |
% change on prev. year |
3 months to June 2013 |
% change on prev. year |
12 months to (month) 2013 |
% change on prev. year |
January 2013 |
£30m |
+30 |
£84m |
+18% |
£333m |
+16% |
February 2013 |
£28m |
+17 |
£81m |
+21% |
£337m |
+15% |
March 2013 |
£35m |
+30 |
£93m |
+26% |
£345m |
+17% |
April 2013 |
£38m |
+58 |
£101m |
+35% |
£359m |
+20% |
May 2013 |
£40m |
+43 |
£113m |
+43% |
£371m |
+22% |
June 2013 |
£38m |
+52 |
£116m |
+51% |
£384m |
+27% |
There are some critics out there though that believe the growth of these lending figures are purely out of many lenders increasing the loan sizes and maximum caps to their respective loans. However, what can’t be disputed is that there are increasingly more brokers realising the potential of secured loans and also that the market has attracted new lenders to enter it, which has driven up competition and innovation.
Commenting, Fiona Hoyle, Head of Consumer Credit at the FLA, said: “Lenders in the second charge mortgage market will be affected by the transfer of consumer credit regulation to the Financial Conduct Authority in 2014 and will also be subject to the Mortgage Directive in 2015.
“With demand returning to this sector, it’s important that the Government’s implementation plan is managed smoothly to maintain the supply of this type of credit for consumers.”
By Jason McGee-Abe
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