February saw a 10% drop in new business for second charge mortgage agreements compared to February 2022, according to the Finance and Leasing Association (FLA).

There were 2,406 new agreements in February, to the value of £106m, representing a 10% drop on the same time last year.

However, the February total is up on the 2,295 new second charges agreed in January, which had a total value of £103m.

The FLA data also shows there were 33,697 agreements in the 12 months to February – a 22% rise on the previous year. Value wise, this new business amounted to £1.56bn – a 31% annual increase.

FLA director of consumer and mortgage finance and inclusion Fiona Hoyle says: “The lower new business volumes reported by the second charge mortgage market in February reflected weaker economic conditions compared with the same time last year.

“The distribution by purpose of loan in February showed 61% of new agreements were for the consolidation of existing loans, 12% for home improvements, and a further 20% for both loan consolidation and home improvements.”

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