The second charge mortgage market experienced a 3% increase in new business volumes in December 2023, marking the first growth since June 2023 and one of the few instances of growth during the year, according to the Finance & Leasing Association (FLA).
Despite this uptick, the annual overview for 2023 revealed a 10% decrease in new business volumes compared to 2022.
The loan distribution for 2023 indicated a predominant use for loan consolidation, with 59% of new agreements for this purpose, 12% for home improvements, and 23% for a combination of both loan consolidation and home improvements.
Fiona Hoyle (pictured), director of consumer & mortgage finance and inclusion at the FLA, emphasised the importance of communication between borrowers and lenders: “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 December 2023 was £96m, reflecting a 3% decrease from the previous year, with a total of 2,161 new agreements, marking a 3% increase.
Over the last three months to December 2023, there was an 8% decrease in business value and a 6% decrease in the number of agreements.
The annual figures showed an 11% decrease in business value and a 10% decrease in the number of agreements.
