The second charge mortgage market saw new business levels decrease by 71% in June, the latest figures from the Finance & Leasing Association have revealed. 

Credit card and personal loan new business together fell in June 2020 by 29% compared with the same month in 2019, and decreased by 20% in the first six months of 2020.

Retail store and online credit new business was 7% lower in June than in the same month in 2019, and contracted by 11% in the first half of 2020.

Geraldine Kilkelly, head of research and chief economist at the Finance & Leasing Association (FLA), said: “The relatively slow recovery in second charge mortgage new business volumes reflects the gradual reopening of the economy and continued household caution as the outlook for employment and the progression of the virus remains uncertain.

“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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