The worth of second charge lending in May was 22% larger than the identical month final year reaching £142m, figures from the Finance & Leasing Association reveal.
The determine equates to the best month for brand new enterprise by worth since October 2022.
The whole variety of new second charge loans was additionally 16% larger than in May 2023, at 2,957, it discovered.
There was a complete of 32,183 second charge offers accomplished in the 12 months to May, value £1,490m.
However, trying on the 12 months to May 2024 in contrast to the earlier 12 months, lending was down by 1% by variety of agreements and worth of loans.
Finance and Leasing Association director of client and mortgage finance and inclusion Fiona Hoyle says: “May noticed the second charge mortgage market report its highest stage of recent enterprise by worth since October 2022. The market has reported a sustained interval of progress main to new enterprise progress of 20% by worth and 14% by quantity in the primary 5 months of 2024.
“The distribution of recent enterprise by function of mortgage in May 2024 confirmed that the proportion of recent agreements which had been for the consolidation of present loans was 59.8%; for residence enhancements and the consolidation of present loans was 23.7%; and for residence enhancements solely was 11.5%.
“As at all times, prospects who’re involved about assembly funds ought to communicate to their lender as quickly as attainable to discover a resolution.”
