Second mortgage contracts up 24%: FLA

The number of new deals made for a second mortgage in June stood at 2,854, up 24% from a year earlier, according to the Finance & Leasing Association (FLA).

The value of new business in June rose 29% over the same period to £130m, the latest FLA report adds.

This means that in the 12 months to June 2022, the value of new business totaled £1.36 billion, an increase of 61% on the year, with the number of new deals increasing by 52% to reach a total of 30,849.

And in the three months to June, the value of new business equated to £390m with 8,529 new deals, increases of 44% and 37%, respectively.

Fiona Hoyle, Director of Consumer and Mortgage Finance and Inclusion at the FLA, comments: “The second mortgage market continued to see further business growth in June, albeit at a slower pace. 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 resolution.”

Freedom Finance Commercial Director Andrew Fisher adds: “Debt consolidation is likely to be a central theme in the cost of living crisis, and second mortgages are one of the many tools available to homeowners looking to pay off more expensive debt or simplify their lives. credit commitments.

“A new demographic of second-tier mortgage customers emerging from the pandemic have been ‘improvers versus movers’ as people seek to unlock the value of their homes to fund renovations like loft extensions or offices in residence. As property prices continue to rise and interest rates also rise, we expect this trend to continue.

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