11 February 2021
Commenting on the latest new business figures for the second charge mortgage market, Fiona Hoyle, Head of Consumer & Mortgage Finance at the Finance & Leasing Association (FLA), said:
“The second charge mortgage market has seen new business levels gradually pick up since the crisis-low reported in May 2020. The quarterly rate of contraction has eased – compared with the same period in 2019, new business volumes fell by 73% in Q2 2020, by 52% in Q3 2020, and by 30% in Q4 2020. With consumer confidence expected to improve as 2021 progresses, demand in this market is expected to increase.”
Table 1: New second charge mortgage lending
|
Dec 2020 |
% change on prev. year |
3 months to Dec2020 |
% change on prev. year |
12 months to Dec2020 |
% change on prev. year |
Value of new business (£m) |
62 |
-34 |
205 |
-37 |
727 |
-42 |
Number of new agreements (No.) |
1,526 |
-26 |
5,100 |
-30 |
17,109 |
-39 |
Note to editors:
- 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.
- In 2020, FLA members provided £113 billion of new finance to UK businesses and households. £86 billion of this was in the form of consumer credit, representing over a third of total new consumer credit written in the UK in 2020.
- For media enquiries, please contact the FLA press office on 020 7420 9656.