Second charge mortgages hit 17% growth in November

Borrowers turn to loans for debt consolidation and home improvements

Second charge mortgages hit 17% growth in November

The second charge mortgage market in the UK maintained steady growth in November 2024, reflecting borrowers' increasing reliance on this financing option for debt consolidation and home improvements.

New business volumes also rose by 17% compared to the same period in 2023, marking five consecutive months of double-digit increases in both value and volume. 

“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 eleven months to November 2024, new business volumes were 17% higher than in the same period in 2023,” said Fiona Hoyle, director of consumer and mortgage finance and inclusion at the Finance & Leasing Association (FLA),

Borrowers’ primary motivations were highlighted in the latest figures. Loans aimed solely at consolidating existing debts made up 58.8% of new agreements. Those combining debt consolidation with home improvements accounted for 23.4%, while 11.3% were taken out solely for home renovations

The market's financial performance also showed robust growth. The total value of new business in November reached £159 million, up 29% year-on-year. Over the three months to November, the value grew by 35%, totalling £476 million, while the 12-month figure stood at £1.69 billion, reflecting a 22% increase. 

Similarly, the number of new agreements continued to rise, with 3,103 deals recorded in November—17% more than the previous year. Over the past three months, 9,686 agreements were finalised, a 26% increase, while the year-to-date totalled 35,367 agreements, a 16% increase.