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 second charge mortgage market reported a second consecutive month of new business volumes growth and the first growth in the value of new business since June 2023. In the twelve months to January 2024, new business volumes were 10% lower than in the same period in 2023.

“The distribution by purpose of loan in January 2024 showed that 58% of new agreements were for the consolidation of existing loans, 12% for home improvements, and a further 22% 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.”

Table 1: New second charge mortgage lending:

Source:  FLA