Second charge market generates £153m in new business in August – FLA

According to the Finance and Leasing Association (FLA), the number of new agreements came to 3,179, which is up 37 per cent on August last year.

In the three months to August, the value of new second charge business was pegged at £430m, up 45 per cent on the same period the year before, and the number of new agreements rose by nearly a third to 9,160.

For the year to August, the market has completed new business valued at £1.47bn. This is an increase of 53 per cent on the previous year.

There have also been around 32,411 new agreements in the year to August, a 42 per cent rise on the same period the year prior.

Second charge market remains strong

Fiona Hoyle (pictured), director of consumer and mortgage finance and inclusion at the FLA, said: “The second charge mortgage market reported another strong performance in August, with annual new business volumes five per cent higher than pre-pandemic.

“The distribution by purpose remained in line with recent months: 54 per cent of new agreements were for the consolidation of existing loans, 15 per cent for home improvements, and a further 25 per cent for both loan consolidation and home improvements.”

She added: “As always, customers who are concerned about meeting payments should speak to their lender as soon as possible to find a solution.”