Based on figures released by the Finance & Leasing Association (FLA), the second charge mortgage sector has enjoyed a strong first quarter of 2024.
Compared to the first quarter of 2023, second charge mortgage new business volumes increased by 5% in March, with growth reaching a peak of 8% across the first quarter.
There was also an 11% increase (£137m) in the value of new lending in March, which helped raise first quarter totals to 14%.
However, it was not all good news, with lending remaining 7% lower in terms of volume and value compared to the previous 12 months.
8,064 new second charge mortgages were arranged during Q1, with a value of £379m. The FLA report also states that more than 8 out of 10 of these deals were solely or in part to consolidate existing loans.
New second charge mortgage arrangements stood at 2,894 in March, representing an increase of £137m, which helped raise first quarter totals to 14%.
Fiona Hoyle, director of consumer & mortgage finance and inclusion at the FLA, said: “The second charge mortgage market returned a strong performance in the first quarter of 2024 with new business growth in each month of the quarter. In Q1 2024 overall, new business increased 14% by value and 8% by volume compared with Q1 2023.
“The distribution of new business by purpose of loan in Q1 2024 showed that the proportion of new agreements which were either solely or in part for the consolidation of existing loans held relatively steady at 82% compared with the same quarter in 2023."
