The number of new second charge agreements grew by 2% in January, compared to the same month the previous year, the second month in a row of growth.

There were 2,346 new agreements in January 2024, the latest figures from the Finance and Leasing Association (FLA) show there were 2,346 new agreements in January 2024, equal to £113m in new business, 9% higher than January 2023 in monetary terms.

However, for the three months to January, the total number of new agreements was down 1% at 7,153 and equal to the £332m figure a year earlier; and the 30,517 new second charge loans taken out in the 12 months to January this year was down 10% on the previous 12-month period and 11% down in value to £1,392m.

FLA director of consumer & mortgage finance and inclusion Fiona Hoyle says: “The second charge mortgage market reported a second consecutive month of new business volumes growth and the first growth in the value of new business since June 2023.  In the twelve months to January 2024, new business volumes were 10% lower than in the same period in 2023.

“The distribution by purpose of loan in January 2024 showed that 58% of new agreements were for the consolidation of existing loans, 12% for home improvements, and a further 22% for both loan consolidation and home improvements.

“As always, customers who are concerned about meeting payments should speak to their lender as soon as possible to find a solution.”