Second charge mortgage levels fall by 10%

New figures released by the Finance & Leasing Association (FLA) show that second charge mortgage new business volumes fell by 10% in February 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: “The lower new business volumes reported by the second charge mortgage market in February reflected weaker economic conditions compared with the same time last year. The distribution by purpose of loan in February showed 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.”

“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

	Feb 2023	%  change on prev. year	3 months to Feb 2023	% change on prev. year	12 months to Feb 2023	% change on prev. year
Value of new business (£m)	106	-10	309	0	1,557	31
Number of new agreements (No.)	2,406	-10	6,807	-2	33,697	22