Specialist Lending

Second charge mortgage lending falls 52% in August

Rozi Jones
|
9th October 2020
housing market house down decline drop decrease
"While the second charge mortgage market remains subdued compared with pre-crisis levels, it is encouraging to see the number of new mortgages increase month-on-month since the record-low in May."

The number of new second charge mortgage agreements remains 52% below the levels seen in August 2019, according to the latest figures from the Finance & Leasing Association.

On an annual basis, the value of new agreements saw a 57% fall in August compared to the previous year.

In the three months to August, the volume of new lending is 62% below the numbers seen in 2019, and lending remains down 24% in the 12 months to August compared to the previous year.

Despite the continued annual fall, the FLA says the number of new mortgages is beginning to increase month-on-month from the record-lows seen in May.

Fiona Hoyle, head of consumer and mortgage finance at the FLA, said: “While the second charge mortgage market remains subdued compared with pre-crisis levels, it is encouraging to see the number of new mortgages increase month-on-month since the record-low in May.

“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.”

Related articles
More from Specialist Lending
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.