According to the figures the value of new business also fell by 65% annually as the sector continued its recovery from the effects of the pandemic.
The FLA’s data showed the value of new business was at £40 million in July with the total number of agreements at 966.
Fiona Hoyle, head of consumer and mortgage finance at the FLA, said: “The second charge mortgage market is gradually recovering with new business of almost 1,000 new agreements in July, up from a crisis-low of 486 new agreements in May.
“Lenders are continuing to do all they can to support customers during this challenging period and customers experiencing payment difficulties should contact their lender as soon as possible.”
Table 1: New second charge mortgage lending (source: FLA)
| Jul 2020 | % change on prev. year | 3 months to Jul 2020 | % change on prev. year | 12 months to Jul 2020 | % change on prev. year | |
| Value of new business (£m) | 40 | -65 | 87 | -73 | 956 | -19 |
| Number of new agreements (No.) | 966 | -64 | 2,113 | -71 | 21,467 | -19 |
