Second charge mortgage new business volumes fell by 26% in December 2020

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:

β€œThe 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:

  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 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.
  3. For media enquiries, please contact the FLA press office on 020 7420 9656.

 

 

 

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