Second charge business volumes drop 15 per cent annually in August – FLA

Figures from the Finance and Leasing Association (FLA) revealed that the value of new business was down by 22 per cent compared to last year, and reached £120m. 

In the three months to August, there was a nine per cent contraction in the number of agreements compared to 2022 as 8,321 were completed during the period. The value of business amounted to £381m, which was an 11 per cent decline. 

Some 31,662 new agreements were sold in the year to August, which was relatively flat compared to the same period a year before with just a two per cent decline. The value of business over the period was only one per cent down at £1.45bn. 

Fiona Hoyle (pictured), director of consumer and mortgage finance and inclusion at the FLA, said: “The level of new business volumes reported by the second charge mortgage market in August was 15 per cent lower than in the same month in 2022 but was above the monthly average in 2023 so far.   

“The distribution by purpose of loan in August remained stable with 59 per cent of new agreements for the consolidation of existing loans, 12 per cent for home improvements, and a further 24 per cent for both loan consolidation and home improvements.”