According to the latest Finance & Leasing Association (FLA) data, the number of new second charge agreements came to 2,505. This is up 16% year-on-year.
The value of new second charge business came to £458m for the three months to December, an increase of 34% on the same period last year, and the number of new agreements stood at 9,086. The latter is up 22% year-on-year.
In the 12 months to December, new second charge business value was estimated at £1.73bn, a rise of a quarter year-on-year.
The number of new second charge agreements in the same period came to 35,711, up 17% on the same period last year.
This continues a trend of second charge growth, with new second charge business volumes surging 17% in November.
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Fiona Hoyle, director of consumer and mortgage finance and inclusion at the FLA, said: “The second charge mortgage market reported growth in each month of 2024, with new business volumes up by 17% in 2024 overall to reach almost 36,000 new agreements. This was the highest annual total since 2009.
“The distribution of new business by purpose of loan in 2024 was in line with the previous year, with the proportion of new agreements [that] were for the consolidation of existing loans at 59%; for home improvements and the consolidation of existing loans at 22.9%; and for home improvements only at 12.5%.
“As always, customers who are concerned about meeting payments should speak to their lender as soon as possible to find a solution.”
