Second charge mortgage lending tumbled 25% to £109m in September compared to a year ago, reflecting a “weaker economic outlook,” data from the Finance & Leasing Association shows.   

The number of new agreements struck was down 22% to 2,440 in the period. 

In the three months to September, this type of lending was 20% lower at £354m, compared to 12 months earlier.  

The number of new agreements signed was down 17% to 7,833 in the same period. 

Finance & Leasing Association director of consumer & mortgage finance and inclusion Fiona Hoyle says: “The second charge mortgage market reported lower levels of new business in September following a particularly strong performance in the same month last year and reflecting the weaker economic outlook.   

“The distribution by purpose of loan in September held steady with 59% of new agreements for the consolidation of existing loans, 13% for home improvements, and a further 23% for both loan consolidation and home improvements.” 

In the year to September, second charge lending was 6% lower at £1.4bn, compared to the previous year, while signed deals were down 7% to 30,964 over the same period.