Second charge mortgage new business volumes grew by 12% in May 2024

9 July 2024

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: 

“May saw the second charge mortgage market report its highest level of new business by value since October 2022. The market has reported a sustained period of growth leading to new business growth of 20% by value and 14% by volume in the first five months of 2024. 

“The distribution of new business by purpose of loan in May 2024 showed that the proportion of new agreements which were for the consolidation of existing loans was 59.8%; for home improvements and the consolidation of existing loans was 23.7%; and for home improvements only was 11.5%. 

“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

 

May 2024

%

 change on prev. year

3 months to May 2024

% change on prev. year

12 months to May 2024

% change on prev. year

Value of new business (£m)

142

18

417

22

1,490

-1

Number of new agreements (No.)

2,957

12

8,818

16

32,183

-1

 

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 2023, FLA members provided £151 billion of new finance to UK businesses and households. £113 billion of this was in the form of consumer credit, representing almost a third of total new consumer credit written in the UK in 2023.
  3. For media enquiries, please contact the FLA press office on 020 7420 9656.

 

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