Second charge lending falls by 14% in July: FLA

Second charge mortgage new business volumes fell by 14% in July, following a return to growth in June, the latest figures from the Finance & Leasing Association (FLA) show.

Second charge lending was down 14% by both value and volume in July compared to the same month in 2022.

On a quarterly basis, lending fell 7% by value and volume in the three months to July compared to the same three months a year earlier.

However, on an annual basis, lending in the 12 months to July remains 5% higher by value and 2% higher by volume compared to the previous year.

Fiona Hoyle, director of consumer and mortgage finance and Inclusion at the FLA, said: “The second charge mortgage market reported new business 14% lower by both value and volume in July, reflecting more cautious consumer sentiment given the current economic environment. The average advance in July was £46,759, a similar level to the same month in 2022.”