The number of new second charge agreements fell by 3% in December, compared to the same month the previous year, the latest figures from the Finance and Leasing Association (FLA) show.
There were 2,106 new agreements in December 2022 and despite the fall from the same month in 2021, the number of new agreements rose both on a quarterly basis to 7,932 ( up 9%) and an annual basis to 33,772 (31%).
The volume of second charge new business was worth £99m in December, no change on the same month the previous year, though it was worth £372m for the three months to December, representative of a 15% rise on the previous quarter, and £1,557m for the full 12 months of 2022, up 40% on the previous annual total.
Speaking of the figures, FLA director of consumer and mortgage finance and inclusion Fiona Hoyle says: “In December, the second charge mortgage market reported its first monthly fall in new business since March 2021.
“Despite this, new business volumes in 2022 as a whole, at 33,772 agreements, was the highest annual total since 2008. The distribution by purpose of loan in December showed 58% of new agreements were for the consolidation of existing loans, 14% for home improvements, and a further 22% 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.”
