Second charge mortgage lending falls 52% in August

On an annual basis, the value of new agreements saw a 57% fall in August compared to the previous year.

In the three months to August, the volume of new lending is 62% below the numbers seen in 2019, and lending remains down 24% in the 12 months to August compared to the previous year.

Despite the continued annual fall, the FLA says the number of new mortgages is beginning to increase month-on-month from the record-lows seen in May.

Fiona Hoyle, head of consumer and mortgage finance at the FLA, said: “While the second charge mortgage market remains subdued compared with pre-crisis levels, it is encouraging to see the number of new mortgages increase month-on-month since the record-low in May.

“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.”