The Finance & Leasing Association (FLA) has reported a 10% decline in new business volumes for the second charge mortgage market in February 2023.
Fiona Hoyle, director of consumer & mortgage finance and inclusion at the FLA, attributed the lower volumes to weaker economic conditions compared with the same period last year.
In February, 61% of new agreements were for the consolidation of existing loans, 12% for home improvements, and a further 20% for both loan consolidation and home improvements.
Hoyle encouraged customers concerned about meeting payments to speak with their lenders as soon as possible to find a solution.
According to the FLA’s data, the value of new business in February 2023 was £106m, marking a 10% decrease compared to the previous year.
Over the three months to February 2023, the value remained unchanged at £309m. However, over the 12 months to February 2023, the value of new business increased by 31% to £1,557m.
The number of new agreements in February 2023 fell by 10% to 2,406, while the figure for the three months to February 2023 decreased by 2% to 6,807.
Over the 12 months to February 2023, the number of new agreements rose by 22% to 33,697.
