The second charge mortgage market saw new business increase by 36% in April 2024 compared with the same period in 2023, monthly figures from the Finance & Leasing Association show.
The value of new lending increased by 40% to £138m in March, and by 14% across Q1 compared to the same quarter in 2023.
However, in the 12 months to April, lending remains 3% lower by both value and volume compared to the previous 12 months.
Fiona Hoyle, Director of Consumer & Mortgage Finance and Inclusion at the Finance & Leasing Association (FLA), said:
“The second charge mortgage market has seen new business grow in each month of 2024 so far after a subdued performance throughout much of 2023. In the twelve months to April 2024, new business by both value and volume remained 3% lower than in the same period in 2023.
“The distribution of new business by purpose of loan in April 2024 showed that the proportion of new agreements which were for the consolidation of existing loans was 58.0%; for home improvements and the consolidation of existing loans was 23.9% and for home improvements only was 13.1%.
“As always, customers who are concerned about meeting payments should speak to their lender as soon as possible to find a solution.”
