The second charge mortgage sector continues to expand with new business growing by 3% in June.

Figures from the Finance & Leasing Association (FLA) show that the market has growing each month in the first half of 2024, with the latest figures showing the highest number of new agreements since September 2022.

In total new business by value and volume grew in the first six months of 2024 by 17% and 12% respectively, compared with the same period in 2023.

The majority of these second charge mortgages are taken out to consolidate existing loans. This accounted for 59.2% of these loans the first half of 2024. A total of 23.1% of second charge mortgages were for home improvements and the consolidation of existing loans, with 12.5 % for home improvements only.

FLA director of consumer & mortgage finance and inclusion Fiona Hoyle says:“In June, the second charge mortgage market reported the highest number of new agreements since September 2022.”

She adds: “As always, customers who are concerned about meeting payments should speak to their lender as soon as possible to find a solution.”