According to data from the Finance and Leasing Association (FLA), this was 18% higher than the same month a year ago. 

Compared to the previous month, this was a rise on the £138m value of new second charge mortgage business recorded in April. 

In the three months to May, the value of new business amounted to £417m, a 22% jump annually. 

The value of new second charge business reached £1.49bn in the 12 months to May 2024, which was a 1% decline on the previous year. 

Fiona Hoyle (pictured), director of consumer and mortgage finance and inclusion at the FLA, said: “May saw the second charge mortgage market report its highest level of new business by value since October 2022. The market has reported a sustained period of growth, leading to new business growth of 20% by value and 14% by volume in the first five months of 2024.” 

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Second charge agreements 

There were 2,957 second charge mortgages agreed in May, a 12% increase on the same month in 2023. 

On a monthly basis, this was down by just 10 agreements on the 2,967 in April. 

Over the three months to May, there was a 16% rise on the number of second charge mortgages agreed to reach 8,818. In the year to May, this totalled 32,183, which was a 1% decline annually. 

Hoyle said: “The distribution of new business by purpose of loan in May 2024 showed that the proportion of new agreements [that] were for the consolidation of existing loans was 59.8%, for home improvements and the consolidation of existing loans was 23.7%, and for home improvements only was 11.5%.

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