Second charge lending down 9% in May: FLA

Second charge mortgage new business volumes fell by 9% in May compared to the same month in 2022, according to the latest figures from the Finance & Leasing Association (FLA).

By value, second charge lending fell by 11% to £120m.

In the three months to May, lending fell 15% by value and 14% by volume compared to the same three months a year earlier.

On an annual basis, second charge lending remains up 12% by value and 7% by volume in the 12 months to May compared to the previous 12 months.

Fiona Hoyle, director of consumer and mortgage finance and inclusion at the FLA, said: “May saw the second charge mortgage market report its second highest level of new business in 2023 so far, but volumes continued to be lower when compared to the same month in 2022.

"The distribution by purpose of loan in May showed 58% of new agreements were for the consolidation of existing loans, 14% for home improvements, and a further 23% for both loan consolidation and home improvements.”