New second charge business volumes fall 22 per cent in April – FLA

Data from the Finance and Leasing Association (FLA) showed that the value of new business also dropped during the month, with a 23 per cent annual decline to £23m. 

In the three months to April, there were 7,335 new agreements which was 14 per cent lower than the same period last year. Meanwhile, the value of new second charge business in the three months to April came to £328m, which was a 15 per cent drop on the year before. 

Business levels were higher in the 12 months to April however, with the value of new business rising 18 per cent to £1.51bn and the number of new agreements increasing by 11 per cent to 32,766. 

Some 59 per cent of new agreements were to consolidate existing loans, 13 per cent were for home improvements and 22 per cent went towards both loan consolidation and home improvements. 

Fiona Hoyle (pictured), director of consumer and mortgage finance and inclusion at the FLA, said: “The second charge mortgage market reported a further fall in new business volumes in April as uncertainty about the economic outlook continued.   

“As always, customers who are concerned about meeting payments should speak to their lender as soon as possible to find a solution.”