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%.
Friend or foe? The role of AI in mortgage administration
Sponsored by Pepper Money
“As always, customers who are concerned about meeting payments should speak to their lender as soon as possible to find a solution.”
