Large jump in second charge mortgage activity ‒ FLA

According to the latest figures from the Finance & Leasing Association (FLA), there were 2,433 new second-charge deals agreed in July, an increase of 149 per cent on July last year.

This continues a trend, as in the three months leading up to July there were 6,396 agreements, an increase of 198 per cent on the same period in 2020.

The value of the new second-charge loans agreed in July was up by 153 per cent on the previous year at £101m, though again the trend is more pronounced on a quarterly basis. The new business agreed in the three months to July totals £279m, a jump of 217 per cent on the same quarter last year.

Fiona Hoyle, director of consumer and mortgage finance and inclusion at the FLA, noted that the market is seeing a “strong recovery” from the troubles of the pandemic, with the new business figure now at its highest level since February 2020.

She continued: “We expect to see further growth this year as the market returns to pre-pandemic levels of new business.”