Second charge market reports £130m in new business in November – FLA

According to the Finance and leasing Association (FLA), this is slightly down on the months immediately prior, with October’s new business value pegged at £143m and September bringing in £145m.

The number of new agreements for the month came to 2,817, which is up nine per cent on the previous year.

In the three months to November, the value of new second charge business was £418m, up 28 per cent on the same period last year, whilst the number of new agreements was 8,694, an increase 18 per cent on the prior year.

For the 12 months to November, the value of new second charge business was around £1.56bn, a rise of 45 per cent on the same period last year, and new agreements rose by over a third to 33,480.

Second charge market continues to grow but at ‘slower rate’

Fiona Hoyle, FLA’s director of consumer and mortgage finance and inclusion, said that the second charge mortgage market had reported further new business growth in November but at a “slower rate” than the rest of 2022.

She said this was partially due to the market recovering from the pandemic.

Hoyle said that 59 per cent of new agreements in November were for loan consolidation, 13 per cent for home improvements and 23 per cent for 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,” she added.