Second charge lending sees double-digit growth for fifth consecutive month

Second charge mortgage new business volumes grew by 17% in November 2024, with the value of new loans increasing by 29%, according to the latest figures from the Finance & Leasing Association (FLA).

In the three months to November, there were a total of 9,686 agreements totalling £476m, up 26% by volume and 35% by value compared to the same quarter in 2023.

On an annual basis, second charge lending rose 16% by number and 22% by value in the 12 months to November compared with the previous year.

Fiona Hoyle, Director of Consumer & Mortgage Finance and Inclusion at the FLA, said: “The second charge mortgage market has reported growth in each month so far in 2024 and double-digit new business growth by both value and volume in every month since July 2024. In the eleven months to November 2024, new business volumes were 17% higher than in the same period in 2023. 
 
“The distribution of new business by purpose of loan in November showed that the proportion of new agreements which were for the consolidation of existing loans was 58.8%; for home improvements and the consolidation of existing loans was 23.4%; and for home improvements only was 11.3%."