Second charge business volumes rise 17% in February – FLA

Figures from the Finance and Leasing Association (FLA) found that the value of second charge business also rose, with a 22% jump to £130m. 

In the three months to February, some 7,331 agreements were made, which was 8% higher than the same period the year before. Over the same period, the value of new second charge business increased by a tenth to £22m. 

The second charge market saw a slight dip when comparing the year to February 2024 to the same period a year earlier. 

FLA’s data showed that the number of agreements was down by 8% at a total of 30,935, while the value of business dropped by 9% to £1.4bn. 

A positive start to 2024 

Fiona Hoyle (pictured), director of consumer and mortgage finance and inclusion at the FLA, said: “The second charge mortgage market has made a positive start to 2024 as new business volumes increased by 10% in the first two months of this year compared with the same period in 2023.

“In the 12 months to February 2024, new business volumes were 8% lower than in the same period in 2023.”

Most borrowers consolidating loans 

Hoyle added: “The distribution by purpose of loan in February 2024 showed that 60% of new agreements were for the consolidation of existing loans, 13% for home improvements, and a further 23% 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.” 

In March, the FLA reported that second charge business volumes rose 2% in January.