74% drop in second charge mortgage business

The second charge mortgage market saw a 74% annual fall during June as £27m in new business was conducted, new figures published by the Finance & Leasing Association (FLA) have revealed.

Data showed that the total was made up from 661 new agreements made during the month, which represented a 71% fall from the figure recorded by the FLA in June 2019.

June’s figures follow the 81% annual drop in the total of new business in the second charge mortgage market that the FLA revealed in May.

The latest data from the FLA also showed that there was £80m in new business conducted in the second charge mortgage market in the three months to June 2020, made up from 1,832 new agreements. These totals represented falls of 74% and 73% respectively, as the market continues to react to the impact of COVID-19.

FLA head of research and chief economist, Geraldine Kilkelly, commented: “The relatively slow recovery in second charge mortgage new business volumes reflects the gradual reopening of the economy and continued household caution as the outlook for employment and the progression of the virus remains uncertain.

“Lenders are continuing to do all they can to support customers during this challenging period and customers experiencing payment difficulties should contact their lender as soon as possible.”

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