Second charge lending volumes up 42% in May: FLA
Second charge lending agreements totalled 2,873 in May, a 42% annual increase, figures from the Finance & Leasing Association show.
"We expect new business to continue to grow in the coming months but at a slower rate. Annual new business volumes in May were 2% lower than the pre-pandemic peak."
In the three months to May there were 8,733 total agreements, a 44% rise compared to the same quarter in 2021. On an annual basis lending rose 63% to 30,302 agreements in the 12 months to May compared to the preceding year.
Total second charge lending amounted to £133m in May, an annual rise of 53%. In the 12 months to May, lending totalled £1.33bn, 73% higher than in the previous year.
Fiona Hoyle, director of consumer and mortgage finance at the FLA, said: “The second charge mortgage market has returned to more normal levels of new business since June 2021.
"We expect new business to continue to grow in the coming months but at a slower rate. Annual new business volumes in May were 2% lower than the pre-pandemic peak.”
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