A total of £21m worth of new business in the second charge mortgage market was conducted during May, an 81% drop from the same month last year, new data from the Finance & Leasing Association (FLA) has revealed.

Figures also showed that May’s business was comprised of 486 new agreements, a total which also saw a significant fall of 80% from May 2019.

The FLA’s latest data revealed that the three months to May totalled £145m worth of business in the second charge mortgage market, made up of 3,221 new agreements. Compared to the three months to May 2019, both figures represented slumps of 54%.

Over the 12-month period to May, however, the data revealed the 24,767 new agreements making up £1.1bn in new second charge mortgage business reflected more modest falls of just 3% respectively, against the 12 months to May 2019.

FLA head of consumer and mortgage finance, Fiona Hoyle, commented: “The severity of the lockdown restrictions on the second charge mortgage market is reflected in the record low level of new business volumes in May. The market, however, remains in a strong position to meet new demand and forbearance requests during the months ahead.

“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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