The volume of second charge mortgage new business grew by 45% in the year to August 2022, the latest figures from the Finance and Leasing Association (FLA) show.

The total number of new agreements in August was 3,179, worth £153m, representing a 37% increase compared to the previous year. 

Of the new agreements, 54% were for the consolidation of existing loans, 15% for home improvements, and a further 25% were for both loan consolidation and home improvement.

For the three months to August, 9,160 second charge new agreements were arranged, worth £430m. 

Figures were up for the 12-month period to August 2022, with 32,441 worth a total of £1,465m, which represents an increase of 53% in value compared to the previous 12 months.

Finance & Leasing Association (FLA) director of consumer and mortgage finance and inclusion Fiona Hoyle says: “The second charge mortgage market reported another strong performance in August, with annual new business volumes 5% higher than pre-pandemic.”

“The distribution by purpose remained in line with recent months: 54% of new agreements were for the consolidation of existing loans, 15% for home improvements, and a further 25% 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.”