Second charge lending up 2% in January: FLA

Second charge mortgage new business volumes grew by 2% in January 2024, according to the latest figures from the Finance & Leasing Association (FLA).

The second charge mortgage market reported a second consecutive month of new business volumes growth and the first growth in the value of new business since June 2023 - up by 9% to £113m.

However, in the twelve months to January 2024, new business volumes remained 10% lower than in the same period in 2023.

The distribution by purpose of loan in January 2024 showed that 58% of new agreements were for the consolidation of existing loans, 12% for home improvements, and a further 22% for both loan consolidation and home improvements.

Separate research, published today by Knowledge Bank in conjunction with Pepper Money, found that searches for second charge mortgages increased by 14% year-on-year in 2023.