Second charge mortgage lending fell by 14% in July 2023 compared to the same period last year, according to the latest figures from the Finance & Leasing Association (FLA).

In total there were 2,689 new agreements during the month.

Overall, in the three months from May to July, there were 8,258 new agreements – a 7% decline in both value and volume.

However, on an annual basis, lending in the 12 months from July 2022 to July 2023 remains 5% higher by value and 2% higher by volume compared to the previous year.

The average advance in July was £46,759, a similar level to the same month in 2022.

The FLA’s director of consumer & mortgage finance and inclusion, Fiona Hoyle, says the figures reflect more cautious consumer sentiment given the current economic environment.

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