Second charge mortgage lending up 32% year-on-year: FLA

Second charge mortgage new business volumes grew by 32% in October compared to the same month in 2023, while the value of business is up by 39%, according to the latest figures from the Finance & Leasing Association (FLA).

In the three months to October, there were 9,732 new agreements totalling £469m, up 25% by volume and 34% by value compared to the same quarter last year.

On an annual basis, lending in the 12 months to October is up 14% by volume and 19% by value compared to the previous year.

Fiona Hoyle, director of consumer & mortgage finance and inclusion at the FLA, said: “Housing market activity has begun to pick up since the Bank of England started to cut Bank Rate in the second half of this year. In October, the second charge mortgage reported further strong new business growth by both value and volume compared with the same month in 2023. In the ten months to October 2024, new business volumes were 17% higher than in the same period in 2023. 

“The distribution of new business by purpose of loan in October showed that the proportion of new agreements which were for the consolidation of existing loans was 58.4%; for home improvements and the consolidation of existing loans was 23.3%; and for home improvements only was 12.4%."