The Finance and Leasing Association’s (FLA’s) figures showed the value of new second charge business came to £149m in September, 37% higher than the year before.
The second charge market also grew on a quarterly basis, as the number of new agreements came to 9,618 over the three months to September – a 23% rise. Meanwhile, the value of business was 31% higher at £464m in September.
In the 12 months to September, there were 10% more new second charge agreements at a total of 34,059, while the value of business during this time frame was 14% up at £1.6bn.
Fiona Hoyle (pictured), director of consumer and mortgage finance and inclusion at the FLA, said: “The second charge mortgage market reported a third consecutive month of double-digit new business growth by both value and volume in September, boosted by the lower interest rate environment. In the nine months to September 2024, new business volumes were 16% higher than in the same period in 2023.
“The distribution of new business by purpose of loan in September showed that the proportion of new agreements [that] were for the consolidation of existing loans was 58.1%; for home improvements and the consolidation of existing loans was 23.3%; and for home improvements only was 12.1%.”
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Hoyle added: “As always, customers who are concerned about meeting payments should speak to their lender as soon as possible to find a solution.”
Compared to the previous month, agreements in September were marginally down on the 3,149 seen in August and lower than the value of new business, which reached £152m.
