"The severity of the lockdown restrictions on the second charge mortgage market is reflected in the record low level of new business volumes in May. "
Ongoing Covid-19 lockdown restrictions caused second charge new business volumes to fall by 80% in May, according to new figures from the Finance and Leasing Association.
The value of new business totalled £21m in May, down by 81% compared to June 2019. Lending in March, April and May is down by 54% to £145m compared to the same three months in 2019.
By volume, the number of new agreements saw an annual fall of 80% to 486 in May. Numbers also fell by 54% on a quarterly basis compared to the previous year.
Fiona Hoyle, head of consumer and mortgage finance at the FLA, said: “The severity of the lockdown restrictions on the second charge mortgage market is reflected in the record low level of new business volumes in May. The market, however, remains in a strong position to meet new demand and forbearance requests during the months ahead.
“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.”