Data from the Finance and Leasing Association (FLA) found that the value of new second charge mortgage business also rose, with a 27% rise to £152m. This was slightly down on the previous month’s total of £163m.
Second charge mortgage activity was up on all counts, as the number of new agreements completed in the three months to August was 15% up on the previous year at 9,532, while the value of business for the same period increased by 21% annually to £460m.
Additionally, 33,394 second charge mortgage agreements were completed in the 12 months to August, 5% more than the previous year. The value of this business over the 12-month period totalled £1.56bn, an 8% yearly increase.
Fiona Hoyle (pictured), director of consumer and mortgage finance and inclusion at the FLA, said: “The second charge mortgage market reported its eighth consecutive month of new business growth by both value and volume in August following a subdued performance during 2023. In the eight months to August 2024, new business volumes were 14% higher than in the same period in 2023.
“The distribution of new business by purpose of loan in August showed that the proportion of new agreements [that] were for the consolidation of existing loans was 59.4%; for home improvements and the consolidation of existing loans was 21.4%; and for home improvements only was 13.5%.
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“As always, customers who are concerned about meeting payments should speak to their lender as soon as possible to find a solution.”
