The second charge mortgage market witnessed a growth of 3% in new business volumes for June 2023. This is the first time since January this year that the market has experienced an increase in both value and volume.
According to the Finance & Leasing Association (FLA), the value of new second charge mortgage business reached £136m in June, marking a 4% increase compared to the previous year. In addition, the number of new agreements was 2,928, a 3% rise on the previous year.
The distribution by purpose of loan in June revealed that 58% of new agreements were for the consolidation of existing loans, 13% were aimed at home improvements, and 23% were allocated for both loan consolidation and home improvements.
The figures for the three months leading up to June 2023, however, show a 10% decline in the value of new business, totalling £354m, and a 9% drop in the number of new agreements, at 7,753.
The 12-month view to June 2023 presents a more favourable picture, with a 10% increase in the value of new business, reaching £1,504m, and a 5% increase in the number of new agreements, totalling 32,575.
Fiona Hoyle (pictured), director of consumer & mortgage finance and inclusion at the FLA, said: “June saw a return to growth in the second charge mortgage market as new business increased by value and volume for the first time since January this year.”
She also offered guidance to customers concerned about meeting payments, advising them to “speak to their lender as soon as possible to find a solution.”
