Second charge mortgage new business volumes fell by 15% in August 2023, according to the latest findings from the Finance & Leasing Association (FLA).
According to the FLA’s data, the number of new agreements stood at 2,704 for the month of August.
The value of new business for the month was recorded at £120m, marking a 22% drop when compared to August 2022.
Fiona Hoyle, director of consumer & mortgage finance and inclusion at the FLA, said: “The level of new business volumes reported by the second charge mortgage market in August was 15% lower than in the same month in 2022 but was above the monthly average in 2023 so far.
“The distribution by purpose of loan in August remained stable with 59% of new agreements for the consolidation of existing loans, 12% for home improvements, and a further 24% for both loan consolidation and home improvements.”
She continued: “As always, customers who are concerned about meeting payments should speak to their lender as soon as possible to find a solution.”
Matt Tristam, co-founder of The Loans Warehouse, said: “Whilst the headline will focus on a small drop in lending against the same period last year, this time last year second charge lending was on a march, right up until the October mini-Budget (Thanks again Kwasi).
“The second charge market has been making steady progress over the last six months helped by the increased opportunity that exists with so many customers still in long term fixed rate mortgages looking for alternative ways to borrow.
“We are predicting a strong final quarter of 2023.”
