The number of new second charge agreements made in January 2021 dropped 40 per cent on January 2020’s number, says the Finance and Leasing Association.

In total, there were 1,302 new agreements made in the first month of the year at a value of £56m – itself a 46 per cent drop on a year ago.

In the three months to January 2021, the FLA logged 4,685 agreements made – a 31 per cent fall on the previous year – at a value of £193m, which is a 38 per cent drop across the same time frame.

And in the 12 months to January this year there were 16,243 agreements made, says the FLA. This makes for a 42 per cent drop on the previous year and, at £680m, a 46 per cent fall in value.

FLA director of consumer, mortgage finance, and inclusion Fiona Hoyle says: “The fall in new business volumes in January is not surprising given the lockdown restrictions currently in place.

“We expect demand in this market to increase significantly during 2021 as consumer confidence improves.”