Second charge lending increases by 8% in Q1: FLA

Second charge mortgage new business volumes grew by 5% in March, with growth in the first quarter of 2024 now at 8%, according to the latest figures from the Finance & Leasing Association (FLA).

The value of new lending increased by 11% to £137m in March, and by 14% across Q1 compared to the same quarter in 2023.

However, in the 12 months to March, lending remains 7% 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: “The second charge mortgage market returned a strong performance in the first quarter of 2024 with new business growth in each month of the quarter. In Q1 2024 overall, new business increased 14% by value and 8% by volume compared with Q1 2023.

“The distribution of new business by purpose of loan in Q1 2024 showed that the proportion of new agreements which were either solely or in part for the consolidation of existing loans held relatively steady at 82% compared with the same quarter in 2023."