Second charge mortgage new business volumes fell by 13% in October 2023

Commenting on the latest new business figures for the second charge mortgage market, Fiona Hoyle, Director of Consumer & Mortgage Finance and Inclusion at the Finance & Leasing Association (FLA), said: 

“Recent trends in the second charge mortgage market reflect a strong performance last year that has not been sustained during 2023 and the subdued economic outlook. The distribution by purpose of loan in October showed that  61% of new agreements were for the consolidation of existing loans, 12% for home improvements, and a further 23% for both loan consolidation and home improvements.” 

“As always, customers who are concerned about meeting payments should speak to their lender as soon as possible to find a solution.” 

Table 1: New second charge mortgage lending

 Note to editors: 

1. FLA members in the consumer finance sector include banks, credit card providers, store card providers, second-charge mortgage lenders, motor finance providers, personal loan and instalment credit providers.
2. In 2022, FLA members provided £151 billion of new finance to UK businesses and households. £116 billion of this was in the form of consumer credit, representing over a third of total new consumer credit written in the UK in 2022.
3. For media enquiries, please contact the FLA press office on 020 7420 9656.