Second charge lending grows for first time since June 2023: FLA

Second charge mortgage new business volumes saw annual growth of 3% in December, the first rise since June 2023, according to the latest data from the Finance & Leasing Association (FLA).

The value of new business fell by 3% in December to £96m.

On a quarterly basis, second charge lending was down 6% by volume and 8% by value in Q4 compared to the same quarter in 2022.

On an annual basis, second charge lending remains 10% lower by volume and 11% by value in 2023 compared to 2022.

Fiona Hoyle, director of consumer & mortgage finance and inclusion at the FLA, said: “December saw the second charge mortgage market report growth in new business volumes for the first time since June 2023 and for only the third time during last year. In 2023 overall, new business volumes were 10% lower than in 2022.

“The distribution by purpose of loan in 2023 showed that 59% of new agreements were for the consolidation of existing loans, 12% for home improvements, and a further 23% for both loan consolidation and home improvements."