August stats show further growth in second charge lending

October 16, 2024 by Heidi

Lenders

New figures released for August show the month brought a further rise in second charge loan numbers, marking the eighth month in a row where this has happened.

These figures were published by the Finance and Leasing Association (FLA). It reveals the total number of agreed second charge loans for August was 3,149. This represents an increase of 16% in comparison to the same month last year. It also marks an eighth consecutive month where this part of the mortgage market has enjoyed growth.

Indeed, the second charge market has been in rude health for the past year. There has been a 5% year-on-year rise in new loan numbers and an 8% annual rise in value.

Fiona Hoyle from the FLA said to Mortgage Introducer that it was a distinct change from the situation during 2023, when this part of the market was fairly slow. She then continued by saying:

“The distribution of new business by purpose of loan in August showed that the proportion of new agreements which were for the consolidation of existing loans was 59.4%; for home improvements and the consolidation of existing loans was 21.4%; and for home improvements only was 13.5%.”

Hoyle concluded by saying that borrowers who are struggling to maintain their repayments should talk to their mortgage lenders before rushing into anything.

It can also be very useful for people in that situation to consult a mortgage advisor who has CeMAP training, as they may be able to recommend another option.