The value of second charge lending in May was 22% increased than the identical month final 12 months reaching £142m, figures from the Finance & Leasing Association reveal.
The determine equates to the highest month for new enterprise by value since October 2022.
The whole variety of new second charge loans was additionally 16% increased 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 comparison with the earlier 12 months, lending was down by 1% by variety of agreements and value of loans.
Finance and Leasing Association director of shopper and mortgage finance and inclusion Fiona Hoyle says: “May noticed the second charge mortgage market report its highest degree of recent enterprise by value since October 2022. The market has reported a sustained interval of development resulting in new enterprise development of 20% by value and 14% by quantity in the primary 5 months of 2024.
“The distribution of recent enterprise by objective 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 dwelling enhancements and the consolidation of present loans was 23.7%; and for dwelling enhancements solely was 11.5%.
“As all the time, prospects who’re involved about assembly funds ought to communicate to their lender as quickly as potential to discover a answer.”
