The volume of second charge new business grew by 57% in the year to January 2022, according to the latest figures from the Finance and Leasing Association (FLA).

The total number of new agreements in January was 2,116, worth £91m and equating to a 56% increased in value compared to the same month in 2021. However, the figure represents a drop from 2,174, worth £99m in December 2021.

For the three months to January, 6,874 second charge new agreements were arranged, worth £305m. Yet, this is a fall from the 7,301 second charge new agreements arranged in December, worth £323m.

Figures were up for the 12 month period to January 2022, with 26,642 worth a total of £1,143m.  This represents an increase of 62% in value on the previous 12 months.

FLA director of consumer and mortgage finance and inclusion Fiona Hoyle says: “The second charge mortgage market continued its recovery in January with further strong growth in new business volumes. This market helps consumers in a variety of ways, including home improvements, and will continue to do so as households face increasing pressure on disposable incomes over the coming months.”