Second charge lending remains 34% below pre-pandemic levels
Second charge lending volumes remain 34% below pre-pandemic levels by volume, according to the latest data from the Finance & Leasing Association.
"The UK lockdown restrictions over the winter months contributed to a fall of a third in second charge mortgage new business volumes."
In February 2021, new agreements totalled 1,609, 34% below February 2020, while by value volumes fell by 37% to £67m.
In the three months to February, lending fell 33% by volume and 39% by value compared to the same three months a year earlier.
On an annual basis, there were 15,417 new agreements with a total value of £640m in the year to February 2021, down 46% and 50% respectively compared to the previous 12 months.
Fiona Hoyle, director of consumer and mortgage finance at the FLA, said: “The UK lockdown restrictions over the winter months contributed to a fall of a third in second charge mortgage new business volumes.
"As consumer confidence improves and the economy re-opens, we expect to see a strong rebound in demand in this market.”
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