Second charge lending continues to grow but at slower rate: FLA

Second charge mortgage new business volumes grew by 9% in November 2022, according to the latest figures from the Finance & Leasing Association.

The number of new agreements totalled 2,817 in November, while the value of new lending rose by 14% to £130m.

In the three months to November, second charge lending grew 18% by volume and 28% by value. On an annual basis, lending is up 34% by volume and 45% by value compared to the previous 12 months.

Fiona Hoyle, director of consumer and mortgage finance and inclusion at the FLA, said: “The second charge mortgage market reported further growth in new business in November but at a slower rate than we have seen for much of 2022 when the market was recovering from the pandemic.

"The distribution by purpose of loan in November showed 59% of new agreements were for the consolidation of existing loans, 13% for home improvements, and a further 23% for both loan consolidation and home improvements.”

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