The number of new second charge agreements in December stood at 2,106 in December, down 3% month-on-month, according to the latest Finance & Leasing Association (FLA) figures.
However, the value of new business remained steady at £99m.
Fiona Hoyle (pictured), director of consumer & mortgage finance and inclusion at the FLA, said: “In December, the second charge mortgage market reported its first monthly fall in new business since March 2021.
“Despite this, new business volumes in 2022 as a whole, at 33,772 agreements, was the highest annual total since 2008.
“The distribution by purpose of loan in December showed 58% of new agreements were for the consolidation of existing loans, 14% for home improvements, and a further 22% for both loan consolidation and home improvements.
“As always, customers who are concerned about meeting payments should speak to their lender as soon as possible to find a solution.”
