News

Second charge lending grows by 25% in July 2024

New data from the Finance and Leasing Association (FLA) highlights a significant rise in second charge lending for July 2024. Lending activity increased by 25% compared to July 2023.

In July alone, 3,364 new loan agreements were issued, totaling £163 million—a 30% jump from the same period last year. Over the three months leading up to July, lending volumes rose by 13%, with the total value of loans growing by 18% compared to the same timeframe in 2023.

For the 12 months ending in July 2024, the number of new agreements reached 32,949, marking a 3% increase. The total value of new business also saw a 4% rise, reaching £1.53 billion.

Fiona Hoyle, Director of Consumer and Mortgage Finance at the FLA, commented:

“The second charge mortgage market returned a strong performance in July as consumers have become more confident in recent months about the economic outlook. This contributed to double-digit growth in new business volumes of 14% in the first seven months of 2024 compared with the same period in 2023.

“The distribution of new business by purpose of loan in July showed that the proportion of new agreements which were for the consolidation of existing loans was 58.8%; for home improvements and the consolidation of existing loans was 21.6%; and for home improvements only was 12.6%."

The rising demand for second charge lending is clear from the significant growth in new agreements and loan values. As more consumers turn to this financing option to manage their financial needs, it is crucial for brokers, like you, to stay informed and ready to support their clients.