"The lower new business volumes reported by the second charge mortgage market in February reflected weaker economic conditions compared with the same time last year."
Second charge mortgage new business volumes fell by 10% in February 2023 compared to the same month in 2022, according to the latest data from the Finance & Leasing Association (FLA).
Second charge lending also fell 10% by value over the month, with 2,406 plans totalling £106m agreed over the month.
Despite the fall, second charge lending remains 22% higher by volume and 31% higher by value in the year to February, compared to the previous 12 months.
Fiona Hoyle, director of consumer and mortgage finance and inclusion at the FLA, said: “The lower new business volumes reported by the second charge mortgage market in February reflected weaker economic conditions compared with the same time last year.
"The distribution by purpose of loan in February showed 61% of new agreements were for the consolidation of existing loans, 12% for home improvements, and a further 20% for both loan consolidation and home improvements.
“As always, customers who are concerned about meeting payments should speak to their lender as soon as possible to find a solution.”
