Second charge agreements hit four year high

New agreements were up by 25% to 1,391 during October while the value of new business grew in by 42%. Over the same period, the average advance increased by 14% to £31,632.

During the same period there was also a 5% year-on-year increase in consumer finance new business.

But the FLA warned that the current sustained demand for credit needs a sensible and proportionate approach to regulation from the FCA.

Fiona Hoyle, head of consumer finance at the FLA, said: “Today’s figures show a continued demand for responsibly-provided credit and maintaining the supply of credit has got to be a priority for the Financial Conduct Authority as it finalises its new regulatory regime.

“The FLA has called for a sensible and proportionate approach – one which recognises the extremely short timeframe that firms have to implement wide-ranging changes.

“With only four months to go before the new regime is introduced, and the final rulebook not due for publication until the end of February, sensible transitional arrangements are going to be essential.”