Second charge lending volumes grow 25% in July: FLA

Second charge mortgage new business volumes grew by 25% in July 2024 compared to the same month a year earlier, according to the latest figures from the Finance & Leasing Association (FLA).

There were 3,364 new agreements in July totalling £163m, which is 30% higher by value compared to July 2023.

On a quarterly basis, the three months to July saw lending increase 13% by volume and 18% by value compared to the same quarter in 2023.

In the 12 months to July, lending rose 3% by volume and 4% 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 returned a strong performance in July as consumers have become more confident in recent months about the economic outlook. This contributed to double-digit growth in new business volumes of 14% in the first seven months of 2024 compared with the same period in 2023. 
 
“The distribution of new business by purpose of loan in July showed that the proportion of new agreements which were for the consolidation of existing loans was 58.8%; for home improvements and the consolidation of existing loans was 21.6%; and for home improvements only was 12.6%."