In August 2023, the second charge mortgage market experienced a 15% decline in new business volumes compared to the same month in 2022, as reported by the Finance & Leasing Association (FLA). Despite this decrease, the figures were above the monthly average for 2023 so far.
The breakdown of the loan purposes in August showed stability, with 59% of new agreements being for the consolidation of existing loans, 12% for home improvements, and 24% for a combination of both loan consolidation and home improvements.
Fiona Hoyle (pictured), 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.”
Hoyle also advised customers facing payment difficulties, “As always, customers who are concerned about meeting payments should speak to their lender as soon as possible to find a solution.”
The value of new business in August 2023 was £120m, a 22% decrease from the previous year, while the number of new agreements stood at 2,704, marking a 15% decrease.
Over the three months leading up to August 2023, there was an 11% decline in the value of new business and a 9% decrease in the number of new agreements.
The annual figures up to August 2023 showed a slight 1% decline in the value of new business and a 2% decrease in the number of new agreements.
