Second charge lending falls by 22% in September: FLA

The number of new agreements fell by 22% to 2,440.

Related topics:  Specialist Lending,  Second charge
Rozi Jones | Editor, Barcadia Media Limited
15th November 2023
decline graph chart down decrease drop
"The distribution by purpose of loan in September held steady with 59% of new agreements for the consolidation of existing loans"

Second charge new business lending fell 22% by volume and 25% by value in September compared to the previous year, the latest figures from the Finance & Leasing Association (FLA) show.

Second charge lending totalled £109m over 2,440 agreements in September.

In Q3, there were 7,833 agreements totalling £354m, down 17% by volume and 20% by value compared to the same quarter in 2022.

In the year to September, the number of agreements is down 7% and the value of new lending dropped by 6% to £1.41bn compared to the previous 12 months.

Fiona Hoyle, director of consumer and mortgage finance and inclusion at the FLA, said: “The second charge mortgage market reported lower levels of new business in September following a particularly strong performance in the same month last year and reflecting the weaker economic outlook.

"The distribution by purpose of loan in September held steady with 59% of new agreements for the consolidation of existing loans, 13% for home improvements, and a further 23% for both loan consolidation and home improvements.”

More like this
CLOSE
Subscribe
to our newsletter

Join a community of over 30,000 intermediaries and keep up-to-date with industry news and upcoming events via our newsletter.