Second charge mortgage lending returned to growth in June, the latest statistics from the Finance & Leasing Association (FLA) show.

According to the FLA, it is the first time that new business has increased by both value and volume since January.

However, quarterly lending fell by 9% by volume and 10% by value compared to the same quarter in 2022.

Over the past 12 months, lending increased by 10% on the previous 12.

The number of new agreements stood at 32,575 over the past year, an increase of 5% compared to the 12 months prior.

The FLA’s director of consumer and mortgage finance and inclusion, Fiona Hoyle, says: “June saw a return to growth in the second charge mortgage market as new business increased by value and volume for the first time since January this year.

“The distribution by purpose of loan in June showed 58% of new agreements were for the consolidation of existing loans, 13% 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.”