The value of new second charge business increased by 30% in July, compared to the same month the previous year, the latest Finance and Leasing Association (FLA) figures reveal.

The number of new second charge agreements for the 12 months to July grew by 3%, compared to the same period a year earlier, as the growth trajectory of the market continues.

There were 3,364 new agreements undertaken in July 2024, equating to £163m, equating to a 30% increase in value compared to the same month last year.

For the three months to July, the total number of new agreements was 9,340, worth £450m and a rise of 18% from the May to July period in 2023.

FLA director of consumer and mortgage finance and inclusion Fiona Hoyle says; “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.

“The distribution of new business by purpose of loan in July showed that the proportion of new agreements which 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.”