Second charge lending sees further 22% dip in April: FLA

Second charge mortgage new business volumes fell by 22% in April 2023, according to data from the Finance & Leasing Association (FLA).

By value, new business fell by 23% to £99m compared to the same month in 2022.

In the three months to April, second charge lending fell 14% by volume and 15% by value compared to the same quarter a year earlier.

On an annual basis, however, lending is up 18% by value and 11% by volume compared to the previous 12 months.

Fiona Hoyle, director of consumer and mortgage finance at the FLA, said: “The second charge mortgage market reported a further fall in new business volumes in April as uncertainty about the economic outlook continued.

"The distribution by purpose of loan in April showed 59% of new agreements were for the consolidation of existing loans, 13% for home improvements, and a further 22% for both loan consolidation and home improvements.”