Figures released by the Finance & Leasing Association (FLA) have revealed that the value of second charge lending in May reached £142m, 22% higher than the same month in 2023.
Lending was 16% by volume compared to the same quarter in 2024, with annual lending 1% lower by both volume and value compared to the previous year.
The FLA report also found that there were a total of 32,183 second charge deals worth £1,490m completed in the 12 months to May.
Finance and Leasing Association director of consumer and mortgage finance and inclusion Fiona Hoyle says: “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.”
