Second charge new business volumes grow by 5% in March

The volume of new second charge mortgage business grew by 5% throughout the month of March, new data from the Finance & Leasing Association (FLA) has revealed.

Second charge new business was valued at £137m throughout the month, marking an 11% growth when compared to March 2023.

March recorded over 2,894 new agreements, a growth of 5%.

Fiona Hoyle, director of consumer and mortgage finance and inclusion at the FLA, said: “The second charge mortgage market returned a strong performance in the first quarter of 2024 with new business growth in each month of the quarter.

“In Q1 2024 overall, new business increased 14% by value and 8% by volume compared with Q1 2023.

“The distribution of new business by purpose of loan in Q1 2024 showed that the proportion of new agreements which were either solely or in part for the consolidation of existing loans held relatively steady at 82% compared with the same quarter in 2023.

“As always, customers who are concerned about meeting payments should speak to their lender as soon as possible to find a solution.”

Matt Tristram, co-founder & director of Loans Warehouse, added: “We’ve seen strong growth internally for several months and these figures come as no surprise. 

“From our own experience, more and more mortgage brokers are engaging and embracing second charge lending as an alternative for borrowers sitting on low fixed rates from a few years ago, this along with increased competition from lenders and new entrants is driving growth – we expected to continue throughout 2024.”