Second charge lending sees third consecutive month of double-digit growth

Second charge mortgage new business volumes grew by 27% to 3,105 new agreements in September 2024, according to the latest figures from the Finance & Leasing Association (FLA).

On a quarterly basis, lending was up by 23% in Q3 compared to the same three months in 2023, while lending in the 12 months to September was 10% higher than the previous year.

By value, second charge lending rose by 37% in September year-on-year. Lending values also rose by 31% on a quarterly and 14% on an annual basis.

Fiona Hoyle, director of consumer & mortgage finance and inclusion at the FLA, said: "The second charge mortgage market reported a third consecutive month of double-digit new business growth by both value and volume in September boosted by the lower interest rate environment. In the nine months to September 2024, new business volumes were 16% higher than in the same period in 2023. 

“The distribution of new business by purpose of loan in September showed that the proportion of new agreements which were for the consolidation of existing loans was 58.1%; for home improvements and the consolidation of existing loans was 23.3%; and for home improvements only was 12.1%."