The second charge mortgage market saw new business levels decrease by 64% in July, according to data collected by the Finance & Leasing Association (FLA).

Looking to credit cards and personal loans, the data shows an 11% decline year-on-year, and a 35% drop in the three months leading up to July.

Retail store and online credit noted a 3% drop in the year to July 2020, and an 11% fall in the three months leading up to July.

Fiona Hoyle, head of consumer and mortgage finance at the FLA, said: “The second charge mortgage market is gradually recovering with new business of almost 1,000 new agreements in July, up from a crisis-low of 486 new agreements in May.

“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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