user.first_name
Menu

Second Charge Lending

New second charge business volumes surge 17% in November – FLA

New second charge business volumes surge 17% in November – FLA
Shekina Tuahene
Written By:
Posted:
January 16, 2025
Updated:
January 16, 2025

The number of new agreements for second charge mortgages increased 17% annually in November to 3,103, industry data showed.

Figures from the Finance and Leasing Association (FLA) showed that the value of second charge mortgage business also increased, with a 29% growth to £159m. 

In the year to November, there were 16% more new second charge agreements than the same period a year earlier, totalling 35,657. Over the same period, the value of business went up 22% to £1.7bn. 

For the three months to November, there were 9,686 new agreements for second charge, 26% higher than the year before. This was valued at £476m, a 35% uplift on the year before. 

Monthly, November saw a lower level of new agreements than the 3,478 completed in October and the value of business was slightly down on the previous month’s £169m. 

Fiona Hoyle (pictured), director of consumer and mortgage finance and inclusion at the FLA, said: “The second charge mortgage market has reported growth in each month so far in 2024 and double-digit new business growth by both value and volume in every month since July 2024. In the 11 months to November 2024, new business volumes were 17% higher than in the same period in 2023. 

Sponsored

How the housing landscape is set to shift

Sponsored by Halifax Intermediaries

“The distribution of new business by purpose of loan in November showed that the proportion of new agreements [that] were for the consolidation of existing loans was 58.8%; for home improvements and the consolidation of existing loans was 23.4%; and for home improvements only was 11.3%. 

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