The second charge mortgage industry recorded a strong year of growth in 2022. The value of new business increased by 40% compared to 2021, while the 33,772 new agreements were the highest annual total since 2008.
David Hendry, Chief Marketing Officer at Freedom Finance, one of the UK’s leading digital lending marketplaces providing a range of secured lending products, including 2nd charge mortgages, said: “2022 was a strong year for the second charge mortgage market with huge growth in the number and value of new agreements. The industry benefited from a number of tailwinds through the year due to the macro-economic climate.
“Rising mortgage rates made re-mortgaging an unattractive option while the cost-of-living crisis made second charge mortgages an attractive way to consolidate debt. For those considering this option, shopping around between different providers remains essential so that borrowers can secure the best available rates for their personal and financial situation rather than just taking the first product on offer from their existing provider.
“Using digital marketplaces will make this easier as they offer the widest range of lenders and use data to help show customers the deals they are eligible for while considering their overall financial situation to deliver personalised solutions for their circumstances.”
