Second charge mortgage new business fell by 26% in December

New figures released by the Finance & Leasing Association (FLA) show that second charge mortgage new business volumes fell by 26%in December 2020.

Commenting on the latest new business figures for the second charge mortgage market, Fiona Hoyle, Head of Consumer & Mortgage Finance at the Finance & Leasing Association (FLA), said “The second charge mortgage market has seen new business levels gradually pick up since the crisis-low reported in May 2020.”

“The quarterly rate of contraction has eased – compared with the same period in 2019, new business volumes fell by 73% in Q2 2020, by 52% in Q3 2020, and by 30% in Q4 2020.  With consumer confidence expected to improve as 2021 progresses, demand in this market is expected to increase.”

New second charge mortgage lending

	Dec 2020	% change on prev. year	3 months to Dec2020	% change on prev. year	12 months to Dec2020	% change on prev. year
Value of new business (£m)	62	-34	205	-37	727	-42
Number of new agreements (No.)	1,526	-26	5,100	-30	17,109	-39