The Finance & Leasing Association (FLA) has reported a 13% decrease in new business volumes for second charge mortgages in October 2023.
This decline is seen as a reflection of the sector’s strong performance in the previous year and the currently subdued economic outlook.
Fiona Hoyle, director of consumer & mortgage finance and inclusion at the FLA, commented on the trends: “Recent trends in the second charge mortgage market reflect a strong performance last year that has not been sustained during 2023 and the subdued economic outlook.
“The distribution by purpose of loan in October showed that 61% of new agreements were for the consolidation of existing loans, 12% for home improvements, and a further 23% for both loan consolidation and home improvements.”
She added, “As always, customers who are concerned about meeting payments should speak to their lender as soon as possible to find a solution.”
The data for October 2023 shows a decrease in the value of new business by 15% compared to the previous year, with a total value of £122m.
“Over the three months leading to October, there was a 20% decrease in new business, and a 10% decrease over the 12 months leading to October.
“The number of new agreements also decreased by 13% in October, 17% over three months, and 9% over 12 months.
