However, FLA figures have revealed that over the twelve months leading up to January 2024, new business volumes have decreased by 10% compared to the same period in the previous year
The Finance & Leasing Association (FLA) has reported that the UK’s second charge mortgage market has witnessed growth in new business volumes for the second consecutive month. Additionally, it has experienced its first increase in new business value since June 2023.
However, FLA figures have revealed that over the twelve months leading up to January 2024, new business volumes have decreased by 10% compared to the same period in the previous year.
According to the data, 58% of new agreements in the second charge mortgage market were focused on consolidating existing loans. Furthermore, 12% were for home improvements, while an additional 22% combined both purposes.
As always, customers who are concerned about meeting payments should speak to their lender as soon as possible to find a solution, said Fiona Hoyle, director of consumer and mortgage finance and inclusion at the Finance & Leasing Association.
In collaboration with Pepper Money for the latter’s Specialist Lending Study, Knowledge Bank reported a 14% rise in searches for second charge mortgages year-on-year in 2023.
The most common search terms related to second charge mortgages included capital raising for debt consolidation, debt management plans, defaults over £300 or registered in the last three years, and credit repair for adverse credit.
Second charge mortgages have been a talking point throughout the year, said Nicola Firth, founder and chief executive of Knowledge Bank. They provide a means for clients to reset their finances and get back in control.
Firth added: It is a route which requires specialist training to complete, but one which offers a more holistic approach to the advice journey for clients. You can see from the top five searches why second charges are such a hot topic, and the advice around these is key.