The number of new second charge mortgage agreements completed in July fell 64 per cent compared to the same month last year, the latest figures from the Finance and Leasing Association show.

Despite just 966 new agreements having been secured in July, the figure is up considerably from the “crisis low” of 486 seen in May.

The value of new business also fell in July, dropping 65 per cent on that month last year to a total of £40m.

The number of new agreements for the three months to July was down 71 per cent to 2,113, while the number for the 12 months to July fell 19 per cent.

The FLA’s overall figures for consumer finance show that new business fell in July by 9 per cent compared with the same month in 2019, and decreased by 23 per cent in the first seven months of 2020.

FLA head of consumer and mortgage finance Fiona Hoyle says: “The second charge mortgage market is gradually recovering with new business of almost 1,000 new agreements in July, up from a crisis-low of 486 new agreements in May.

“Lenders are continuing to do all they can to support customers during this challenging period and customers experiencing payment difficulties should contact their lender as soon as possible.”