The number of new agreements made for a second charge mortgage in June came to 2,854 – 24% growth on the previous year, says the Finance & Leasing Association (FLA).
The value of new business in June increased 29% over the same time frame to £130m, the FLA’s newest report adds.
This means that, in the 12 months to June 2022, the value of new business has totalled £1.36bn, which is a 61% rise on the year, with the number of new agreements rising 52% to a total of 30,849.
And in the three months to June, the value of new business equals £390m at 8,529 new agreements – rises of 44% and 37%, respectively.
FLA director of consumer and mortgage finance and inclusion Fiona Hoyle comments: “The second charge mortgage market continued to report new business growth in June, but at a slower rate than in recent months.
“As always, customers who are concerned about meeting payments should speak to their lender as soon as possible to find a solution.”
Freedom Finance chief commercial officer Andrew Fisher adds: “Debt consolidation is likely to be a core theme of the cost-of-living crisis, and second charge mortgages are one of many tools available to homeowners looking to pay off more expensive debt or simplify their credit commitments.
“A new second charge mortgage customer demographic emerging from the pandemic has been ‘improvers over movers’ as people look to unlock the value in their home to fund renovations like loft extensions or home offices. Given that house prices keep rising and interest rates are also creeping up, we expect this trend to continue.”