The number of new second charge agreements made in February 2021 fell by 34 per cent compared to a year ago, says the Finance and Leasing Association.

In total, there were 1,609 new agreements made in the second month of the year worth £67m – itself a 37 per cent drop on February 2020.

In the three months to February 2021, the FLA logged 4,437 agreements made – a 33 per cent fall on the previous year – at a value of £185m, which is a 39 per cent drop across the same time frame.

It adds, in the 12 months to February this year there were 15,417 agreements made, says the FLA. This makes for a 46 per cent drop on the previous year and, at £640m, a 50 per cent fall in value.

FLA director of consumer, mortgage finance, and inclusion Fiona Hoyle says: “The UK lockdown restrictions over the winter months contributed to a fall of a third in second charge mortgage new business volumes.”

Hoyle adds: “As consumer confidence improves and the economy re-opens, we expect to see a strong rebound in demand in this market.”