The second charge mortgage market returned to growth in April as new business volumes grew 176% during the month.
According to the Finance & Leasing Association (FLA), the number of new agreements reached 1,890 in April, while the value of new business was up 154% at £81 million.
The market has had a modest start to 2021, with lending in the three months to the end of April up 7% and volume up 2% when compared with the same period in 2020.
For the past 12 months to the end of April, however, lending is down 38% and volume down 43%, the figures showed.
“The second charge mortgage market returned to growth in April in line with expectations given the adverse impact of the first lockdown on new business levels in the second quarter of 2020,” said Fiona Hoyle, director of consumer and mortgage finance and inclusion at the FLA.
She added that the second half of 2021 should see a strong recovery in new business levels.