Second charge mortgage new business grows

FLA reports that annual new business volumes surpass the pre-pandemic peak

Second charge mortgage new business grows

The number of new second charge mortgage agreements increased by 24% year-on-year to 2,854 in June, figures from the Finance & Leasing Association (FLA) have revealed.

Consequently, the value of new second charge mortgage lending also grew annually by 29% to reach £130 million.

In the three months to June 2022, the value of new business was £390 million, a rise of 44% from that of the year before. This was £1.36 billion in the 12 months to June, increasing by 61% year-on-year.

There were 8,529 new agreements in the three months leading to June, 37% more than that of last year. In the 12 months to June, there were 30,849, some 52% more than the previous year.

“The second charge mortgage market continued to report new business growth in June, but at a slower rate than in recent months,” Fiona Hoyle, head of consumer and mortgage finance at the Finance & Leasing Association, said. “Annual new business volumes in June surpassed the pre-pandemic peak for the first time reaching 30,849 new agreements.

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

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