The number of new second charge loans agreed in August was 3,149 - 16% higher than the same month in 2023.
In both value (up 8%) and number of new loans (which have increased by 5%) the picture for second charge lending as a whole over the last twelve months compared to the previous twelve months is positive.
Commenting on the latest new business figures for the second charge mortgage market, Fiona Hoyle, Director of Consumer & Mortgage Finance and Inclusion at the Finance & Leasing Association (FLA), said:
“The second charge mortgage market reported its eighth consecutive month of new business growth by both value and volume in August following a subdued performance during 2023. In the eight months to August 2024, new business volumes were 14% higher than in the same period in 2023.
“The distribution of new business by purpose of loan in August showed that the proportion of new agreements which were for the consolidation of existing loans was 59.4%; for home improvements and the consolidation of existing loans was 21.4%; and for home improvements only was 13.5%.
“As always, customers who are concerned about meeting payments should speak to their lender as soon as possible to find a solution.”
