Second charge lending volumes fall 71% in June

The value of new business totalled £27m in June, down by 74% compared to June 2019 but up from the £21m recorded in May.

By volume, the number of new agreements saw an annual fall of 71% to 661 in June, up from 486 in May.

In the three months to June, numbers fell by 73% compared to the same period in 2019.

Geraldine Kilkelly, head of research and chief economist at the FLA, said: “The relatively slow recovery in second charge mortgage new business volumes reflects the gradual re-opening of the economy and continued household caution as the outlook for employment and the progression of the virus remains uncertain.

“Lenders are continuing to do all they can to support customers during this challenging period and customers experiencing payment difficulties should contact their lender as soon as possible.”