The Finance & Leasing Association (FLA) has revealed that second charge mortgage new business volumes fell by 26% in December 2020.
The value of new business was 34% down during the month.
However, there are signs that the market is improving.
Fiona Hoyle, head of consumer & mortgage finance at the FLA, said: The second charge mortgage market has seen new business levels gradually pick up since the crisis-low reported in May 2020.
“The quarterly rate of contraction has eased – compared with the same period in 2019, new business volumes fell by 73% in Q2 2020, by 52% in Q3 2020, and by 30% in Q4 2020.
“With consumer confidence expected to improve as 2021 progresses, demand in this market is expected to increase.”