Second charge mortgage volumes grew by 8% in January

Second charge mortgage new business volumes grew by 8% in January 2023 according to the latest Finance & Leasing Association (FLA) data.

Commenting on the latest new business figures for the second charge mortgage market, Geraldine Kilkelly, Director of Research and Chief Economist at the Finance & Leasing Association (FLA), said “The second charge mortgage market made a positive start to 2023, with growth in both the value and volume of new business.  The distribution by purpose of loan in January showed 61% of new agreements were for the consolidation of existing loans, 14% 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.”

Andrew Fisher, Chief Growth Officer at Freedom Finance said “The second charge mortgage market got off to a flyer in 2023. Many of the economic tailwinds that drove substantial growth through last year remain strong with rising rates making re-mortgaging an unattractive option for those on longer-term fixed-rate deals. Debt consolidation is another significant driver for the second charge market as people look to re-finance more expensive borrowing.”

	Jan 2023	%  change on prev. year	3 months to Jan 2023	% change on prev. year	12 months to Jan 2023	% change on prev. year
Value of new business (£m)	103	14	333	9	1,570	37
Number of new agreements (No.)	2,295	8	7,218	5	33,951	27