Latest figures show that in the first quarter of 2024 new business increased 14% by value and 8% by volume when compared to the first three months of 2023.

There was also growth in new business during each month of this quarter.

In total there were 8,064 new second charge mortgages arranged over this period, with a value of £379m. More than eight out of 10 of these second charge mortgages were solely or in part to consolidate existing loans.

On a monthly basis there were 2,894 new second charge mortgage arranged in March, at a value of £137m. This represents an 11% increase in terms of value and 5% by volume when compared to March the previous year.

Fiona Hoyle, director of consumer and mortgage finance and inclusion at the Finance & Leasing Association says: “The distribution of new business by purpose of loan in Q1 2024 showed that the proportion of new agreements either solely or in part for the consolidation of existing loans held relatively steady at 82% compared with the same quarter in 2023.”