The number of new second charge agreements completed in July totalled 3,364, 25% higher than the same month last year, data from a trade association found.
Figures from the Finance and Leasing Association (FLA) revealed there was a 30% annual jump in the value of new business, which amounted to £163m.
Business was also up year-on-year in the three months to July, with a 13% increase in new agreements, which totalled 9,340 over May to July. The value of new business rose by 18% to £450m.
For the 12 months to July, there was a more modest 3% yearly rise in the number of new agreements, which came to 32,949 for the period. The value of new business increased by 4% to £1.53bn.
Fiona Hoyle (pictured), director of consumer and mortgage finance and inclusion at the FLA, said: “The second charge mortgage market returned a strong performance in July as consumers have become more confident in recent months about the economic outlook.
“This contributed to double-digit growth in new business volumes of 14% in the first seven months of 2024 compared with the same period in 2023.”
Second charges used to consolidate loans
Hoyle added: “The distribution of new business by purpose of loan in July showed that the proportion of new agreements [that] were for the consolidation of existing loans was 58.8%, for home improvements and the consolidation of existing loans was 21.6%, and for home improvements only was 12.6%.
“As always, customers who are concerned about meeting payments should speak to their lender as soon as possible to find a solution.”
This recorded rise in activity comes after Guy Nyirenda, head of commercial and specialist lending at Altura Finance, noted increasing demand for second charge lending.
Shekina is the deputy editor at Mortgage Solutions and commercial editor at Mortgage Solutions and Specialist Lending Solutions. She has nearly eight years of experience in the B2B publishing market, having previously covered the hospitality, retail, pet, accounting and jewellery sectors.
Shekina has worked for Mortgage Solutions and Specialist Lending Solutions for almost five years. Here, she covers the market’s breaking news stories, engages with professionals in the sector, and oversees any commercially agreed content in partnership with mortgage-related companies.
This includes presenting webinars and hosting roundtable discussions on developing themes in the mortgage sector.
She is an NCTJ-trained journalist and was nominated for the Headline Money Awards Mortgage Journalist of the Year in 2021.
In her spare time, Shekina likes to read, travel, listen to music and socialise with friends.
She currently reports on current events in the mortgage market and liaises with financial clients to produce sponsored content.
Follow her on Twitter at @ShekinaMS
