Second charge new business loans fell by 11% to £120m in May, compared to the same period year ago, according to data from the Finance & Leasing Association, despite the levels for this type of mortgage notching up their second highest month of the year. 

The body adds that second charge mortgage new business in the three months to May was 15% down at £342m on a year ago, but in the year to May was 12% higher at £1.5bn over the same period. 

It says the number of new agreements struck in May was 9% lower at 2,641 compared to a year ago. 

In the three months to May signed agreements were 14% down at 7,570 compared to 12 months ago, but in the year to May agreements were 7% higher at 32,501 over the same period. 

Finance & Leasing Association director of consumer & mortgage finance and inclusion Fiona Hoyle says: “May saw the second charge mortgage market report its second highest level of new business in 2023 so far, but volumes continued to be lower when compared to the same month in 2022.  

“The distribution by purpose of loan in May showed 58% of new agreements were for the consolidation of existing loans, 14% for home improvements, and a further 23% for both loan consolidation and home improvements.”