New business volumes in the second charge mortgage market saw a 9% decline in May 2023, according to the latest data. Despite this drop, May recorded the second highest level of new business for the year.
Fiona Hoyle (pictured), director of consumer & mortgage finance and Inclusion at the Finance & Leasing Association (FLA), said: “Despite the significant level of new business in May, volumes continue to be lower when compared to the same month in 2022.
“The distribution by purpose of loan in May showed 58% of new agreements were for the consolidation of existing loans, 14% for home improvements, and a further 23% for both loan consolidation and home improvements.”
In terms of value, new business for May 2023 stood at £120m, marking an 11% decrease from the previous year. Over the three months leading up to May 2023, the value of new business fell by 15% to £342m, while the total for the 12 months leading up to May 2023 rose by 12%.
The number of new agreements reached 2,641 in May 2023, which is a decrease of 9% from the previous year. Over the three months to May 2023, there was a decrease of 14% to 7,570, while the total for the 12 months to May 2023 showed a rise of 7% to 32,501.
