The number of new second charge mortgage agreements in October came to 3,478, a 32% uplift since last year, industry figures showed.
Data from the Finance & Leasing Association (FLA) revealed the value of new business completed during the month was also 39% up on last year, totalling £169m.
Activity was higher when compared to September, which saw 3,105 new agreements valued at £149m.
Second charge mortgage activity was also up over the three months to October, with a 25% increase in new agreements to 9,732 and a 34% rise in the value of business to £469m.
In the 12 months to October, there were 14% more new agreements than in the comparable period. This totalled 34,910. Over the same period, the value of business came to £1.66bn, 19% up on the previous 12 months.
Fiona Hoyle (pictured), director of consumer and mortgage finance and inclusion at the FLA, said: “Housing market activity has begun to pick up since the Bank of England started to cut bank rate in the second half of this year. In October, the second charge mortgage reported further strong new business growth by both value and volume compared with the same month in 2023. In the 10 months to October 2024, new business volumes were 17% higher than in the same period in 2023.
Mind over mortgages: why we need to look after intermediaries’ mental health
Sponsored by Halifax Intermediaries
“The distribution of new business by purpose of loan in October showed that the proportion of new agreements [that] were for the consolidation of existing loans was 58.4%; for home improvements and the consolidation of existing loans was 23.3%; and for home improvements only was 12.4%.
“As always, customers who are concerned about meeting payments should speak to their lender as soon as possible to find a solution.”
