Second charge new business loans slipped by 3% to £96m in December, in a year that saw this type of lending fall 11% to £1.38bn.

New second charge loans agreements lifted 3% to 2,161 in the month, while deals struck over the final quarter of the year were down 6% at 7,434. The value of booked agreements fell 8% to £341m in the last three months of the year.

Overall, booked deals mirrored the value of lending, falling 10% to 30,466 agreements last year.

Finance & Leasing Association director of consumer & mortgage finance and inclusion Fiona Hoyle says: “December saw the second charge mortgage market report growth in new business volumes for the first time since June 2023 and for only the third time during last year. In 2023 overall, new business volumes were 10% lower than in 2022.

“The distribution by purpose of loan in 2023 showed that 59% of new agreements were for the consolidation of existing loans, 12% for home improvements, and a further 23% 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.”