Second charge mortgage lending falls 9%

New figures released by the Finance & Leasing Association (FLA) have shown that second charge mortgage lending fell by 9% in May 2023.

Commenting on the latest new business figures for the second charge mortgage market, Fiona Hoyle, Director of Consumer & Mortgage Finance and Inclusion at the Finance & Leasing Association (FLA), said “May saw the second charge mortgage market report its second highest level of new business in 2023 so far, but volumes continued to be lower when compared to the same month in 2022. The distribution by purpose of loan in May showed 58% of new agreements were for the consolidation of existing loans, 14% for home improvements, and a further 23% 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.”

New second charge mortgage lending

	May 2023	%  change on prev. year	3 months to May 2023	% change on prev. year	12 months to May 2023	% change on prev. year
Value of new business (£m)	120	-11	342	-15	1,498	12
Number of new agreements (No.)	2,641	-9	7,570	-14	32,501	7