Second charge lending to fall 10% in 2023, FLA predicts

Second charge new business lending fell by 6% in November and is now on track to be 10% lower in 2023 than in the previous year, according to the latest data from the Finance & Leasing Association.

2,646 new agreements were written in November, 6% lower than in November 2022, with the value of business also down 6% to £123m.

In the three months to November lending was down 15% by value and 14% by volume compared to the same three months in 2022.

In the 12 months to November, lending is down 10% by volume and 11% by value compared to the previous 12 months.

Fiona Hoyle, director of consumer & mortgage finance and inclusion at the FLA, said: “The second charge mortgage market is on track to record annual new business volumes in 2023 of 30,500 new agreements, 10% lower than in 2022.

"The distribution by purpose of loan in November showed that 60% of new agreements were for the consolidation of existing loans, 11% for home improvements, and a further 24% for both loan consolidation and home improvements.”