According to the Finance and Leasing Association (FLA) figures, there were 2,406 new second charge agreements in February, which is down 10 per cent year-on-year.
In the three months to February, new second charge business was £209m, which is flat year-on-year, and there were 6,807 new agreements, a fall of two per cent compared to the same period last year.
In the 12 months to February, there was £1.6bn in new second charge business, which is an increase of 31 per cent compared to the previous year.
In the same period, there were 3,369 new second charge agreements in place, a rise of 22 per cent compared to the same period in the previous year.
Fiona Hoyle, director of consumer and mortgage finance and inclusion at the FLA, said: “The lower new business volumes reported by the second charge mortgage market in February reflected weaker economic conditions compared with the same time last year.”
She continued that 61 per cent of new agreements in February were for the consolidation of existing loans, 12 per cent was for home improvements and a further 20 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,” Hoyle added.
You may also be interested in the Mortgage Solutions newsletter. All the latest news, analysis and insight from the mainstream residential lending market. Including industry news, adviser business strategy tips and market commentary.