Second charge business volumes rise 17% in February – FLA

  • 09/04/2024
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Second charge business volumes rise 17% in February – FLA
There was a 17% annual increase in the number of new second charge agreements made in February, rising to 2,819, data from an organisation showed.

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.

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