Second charge lending falls 3% in December: FLA

Second charge lending volumes fell by 3% in December, the first monthy fall since March 2021, according to the latest data from the Finance & Leasing Association.

The value of new business, at £99m, was unchanged on the previous month.

Despite the monthly fall, 2022 lending volumes saw their highest annual total since 2008, up 31% on 2021.

In the last quarter of 2022, second charge lending rose 9% by volume at 15% by value.

Fiona Hoyle, director of mortgage Finance and inclusion at the FLA, said: “In December, the second charge mortgage market reported its first monthly fall in new business since March 2021.

"Despite this, new business volumes in 2022 as a whole, at 33,772 agreements, was the highest annual total since 2008. The distribution by purpose of loan in December showed 58% of new agreements were for the consolidation of existing loans, 14% for home improvements, and a further 22% for both loan consolidation and home improvements.”