Second charge mortgage new business loans fell by 6% in November, with deals for this type of lending on course for an overall fall in 2023, data from the Finance & Leasing Association shows. 

New second charge loans came in at £123m with 2,646 agreements signed in the month, both down by 6%. 

Over the three months to November, deals totalled £353m, down 15%, with 7,713 agreements signed, down 14%. 

In the year to November, deals came in at £1.4bn, down 11%, with 30,411 agreements signed, 10% lower than the previous 12 months. 

The body adds that deals struck in 2023 are set to come in 10% below the previous year’s levels. 

Finance & Leasing Association director of consumer & mortgage finance and inclusion Fiona Hoyle says: “The second charge mortgage market is on track to record annual new business volumes in 2023 of 30,500 new agreements, 10% lower than in 2022.  

“The distribution by purpose of loan in November showed that 60% of new agreements were for the consolidation of existing loans, 11% for home improvements, and a further 24% for both loan consolidation and home improvements.”