Second Charge Lending
Second charge new business comes to £145m in June – FLA
The value of new second charge business came to £145m in June, up 7% on the previous year, a report has found.
According to the latest figures from the Finance & Leasing Association (FLA), the number of new second charge agreements came to 3,019, a rise of 3% on the same period last year.
The report stated that in the three months to June, the value of new second charge business was £425m, a 20% increase on the same period last year.
The number of new agreements in the three months up to June stood at 8,943, a jump of 15% compared to last year.
In the 12 months to June 2024, the value of new business was £1.5bn, which is stable on last year, and the number of new agreements was in line with last year’s figures at 32,274.
Fiona Hoyle (pictured), director of consumer and mortgage finance and inclusion at the FLA, said: “In June, the second charge mortgage market reported the highest number of new agreements since September 2022, which meant the market grew each month in the first half of 2024.
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“New business by value and volume grew in the first six months of 2024 overall by 17% and 12% respectively, compared with the same period in 2023.”
She continued: “The distribution of new business by purpose of loan in the first half of 2024 showed that the proportion of new agreements [that] were for the consolidation of existing loans was 59.2%, for home improvements and the consolidation of existing loans was 23.1%, and for home improvements only was 12.5%.
“As always, customers who are concerned about meeting payments should speak to their lender as soon as possible to find a solution.”
The data continued a trend, with second charge mortgage business reaching a 19-month high in May at £142m.