Second charge loan volumes fall 69% in April

By -

 

second charge mortgages

The number of new second charge mortgage agreements has fallen by 69% in April according to the latest new business figures for the second charge mortgage market released by the Finance & Leasing Association.

Fiona Hoyle, Head of Consumer and Mortgage Finance at the Finance & Leasing Association (FLA), said:

“The second charge mortgage market continued to suffer from the closure of the housing market during the lockdown in April. As restrictions are lifted, FLA’s second charge mortgage members are ready to support new demand and continue to provide the necessary forbearance customers require.

Lenders are continuing to do all they can to support customers during this challenging period and customers experiencing payment difficulties should contact their lender as soon as possible.”

Matt Tristram, Co-Founder, Loans Warehouse said:

“The latest figures show the unprecedented effect of Covid-19 on the secured loan industry, lenders reacted fast at the end of March to restrict lending and this is clear to see in April figures. Unfortunately we predict that when May’s figures are released you will see further decline.

I can report that we are now seeing positives signs as we move into June, with those who maintained lending during the lockdown like Optimum Credit & United Trust Bank starting to make criteria enhancements to drive lending back up.”