In the three months to August there were 2,761 agreements which was an even steeper drop of 60 per cent year-on-year, the Finance and Leasing Association (FLA) found.
However, in the 12 months to August, the picture wasn’t as bleak – down 24 per cent compared to the 12 months to August 2019.
The value of new business for August came in at £43m, around 57 per cent lower than the same month in 2019.
Over the 12 months new business was valued at £898m – also 24 per cent lower year-on-year.
However, the market has picked up from lows seen a the height of the property market lockdown.
Fiona Hoyle, head of consumer and mortgage finance at the FLA (pictured), said: “While the second charge mortgage market remains subdued compared with pre-crisis levels, it is encouraging to see the number of new mortgages increase month-on-month since the record-low in May.
“Lenders are continuing to do all they can to support customers during this challenging period and customers experiencing payment difficulties should contact their lender as soon as possible.”