"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.”