Second charge lending sees further 22% dip in April: FLA
59% of new agreements were for the consolidation of existing loans.
"The second charge mortgage market reported a further fall in new business volumes in April as uncertainty about the economic outlook continued."
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.”
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