The second charge mortgage market experienced a further fall in new business volumes in April, according to the latest data from the Finance & Leasing Association (FLA).
The decline is reportedly due to ongoing uncertainty about the economic outlook.
“The second charge mortgage market reported a further fall in new business volumes in April as uncertainty about the economic outlook continued,” Fiona Hoyle (pictured), director of consumer & mortgage finance and inclusion at the FLA, said.
“The distribution by purpose of loan in April showed 59% of new agreements were for the consolidation of existing loans, 13% for home improvements, and a further 22% for both loan consolidation and home improvements,” she explained.
The value of new business dropped by 23% compared to the previous year, standing at £99m for April 2023.
Over the three months leading up to April, there was a 15% decrease in value, settling at £328m.
Despite the recent decline, the year-on-year figure showed an 18% increase for the 12 months to April 2023, totalling £1,512m.
There were 2,184 new agreements in April, a decrease of 22% compared to the same period last year.
Over the three months to April, new agreements saw a 14% decrease, dropping to 7,335. However, the total number of new agreements in the year leading up to April 2023 did increase by 11%, reaching 32,766.
Hoyle added a note of advice to customers who may be feeling the financial pressure. “As always, customers who are concerned about meeting payments should speak to their lender as soon as possible to find a solution,” she said.
