Second charge lending hits 18-month high in May: FLA

Second charge mortgage new business volumes grew by 12% in May compared to the same month in 2023, with lending up 18% by value to £142m, the latest figures from the Finance & Leasing Association (FLA) show.

In the three months to May, lending was up 22% by value and 16% by volume compared to the same quarter in 2023, while annual lending remains 1% lower by both value and volume compared to the previous 12 months.

Fiona Hoyle, director of consumer & mortgage finance and inclusion at the FLA, said: “May saw the second charge mortgage market report its highest level of new business by value since October 2022. The market has reported a sustained period of growth leading to new business growth of 20% by value and 14% by volume in the first five months of 2024.

“The distribution of new business by purpose of loan in May 2024 showed that the proportion of new agreements which were for the consolidation of existing loans was 59.8%; for home improvements and the consolidation of existing loans was 23.7%; and for home improvements only was 11.5%."