Second charge mortgage new business grows by 3%

New figures released by the Finance & Leasing Association (FLA) show that second charge mortgage new business volumes grew by 3% in December 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 “December saw the second charge mortgage market report growth in new business volumes for the first time since June 2023 and for only the third time during last year.  In 2023 overall, new business volumes were 10% lower than in 2022.

“The distribution by purpose of loan in 2023 showed that 59% of new agreements were for the consolidation of existing loans, 12% 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

	Dec 2023	%  change on prev. year	3 months to Dec 2023	% change on prev. year	12 months to Dec 2023	% change on prev. year
Value of new business (£m)	96	-3	341	-8	1,383	-11
Number of new agreements (No.)	2,161	3	7,434	-6	30,466	-10