That’s according to the latest data released by the Finance & Leasing Association (FLA), the industry’s trade body.
It found that there were 2,440 new second charge mortgage agreements in September, which is down by 22 per cent on the same month last year. On a quarterly basis, the number of new deals was down by 17 per cent on the same period in 2022, while the year to September saw new deals fall by seven per cent.
The value of new business was down by a similar amount, with £109m in new second charge deals agreed in September. That’s down by 25 per cent on last year, and by 20 per cent on a quarterly basis.
Fiona Hoyle, director of consumer and mortgage finance and inclusion at the FLA, said that the lower levels of business followed a “particularly strong performance” in the same period of 2022, and was also a reflection of the “weaker economic outlook”.
She continued: “The distribution by purpose of loan in September held steady with 59 per cent of new agreements for the consolidation of existing loans, 13 per cent for home improvements, and a further 23 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.”