Alongside its second charge findings, the Finance and Leasing Association (FLA) data revealed there was also a rise in the value of new business, which was nine per cent higher than the same month last year at £113m.
For the three months to January, the value of new business totalled £332m, which was flat on the same period in 2023. Meanwhile, there were 7,153 agreements over the three months, a marginal one per cent contraction in second charge mortgage business volumes.
Over the 12 months to January, the number of new agreements dropped 10 per cent annually to 30,517, while the value of new business declined by 11 per cent to £1.4bn.
Fiona Hoyle (pictured), director of consumer and mortgage finance and inclusion at the 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 12 months to January 2024, new business volumes were 10 per cent lower than in the same period in 2023.”
Hoyle added: “The distribution by purpose of loan in January 2024 showed that 58 per cent of new agreements were for the consolidation of existing loans, 12 per cent for home improvements, and a further 22 per cent 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.”
These data coincide with findings from Knowledge Bank and Pepper Money, which showed a rise in broker searches for second charge mortgages on its criteria sourcing system.
