Value was still well above the monthly average in 2023
Customers have been being advised to speak to their lender when concerned about meeting payments as the Finance & Leasing Association (FLA) released its latest business figures for the second charge mortgage market.
Fiona Hoyle, director of consumer and mortgage finance and inclusion at the FLA, noted the level of new business volumes had decreased by 15% compared to the same month in 2022. However, she said this value was above the monthly average in 2023 so far.
The FLA said the distribution by purpose of loan in August remained stable with 59% of new agreements for the consolidation of existing loans, while 12% for home improvements and 24% 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,” said Hoyle.
The FLA is a trade association for the consumer finance sector, including banks, credit card providers, store card providers, second-charge mortgage lenders, motor finance providers, personal loan and instalment credit providers. In 2022, FLA members provided £151 billion of new finance to UK businesses and households; £116 billion of this was in the form of consumer credit, representing over a third of total new consumer credit written in the UK in 2022.
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