New business volumes of second charge mortgages fell by 26% in December 2020, according to the Finance & Leasing Association (FLA).
As a result of the decline, the total number of new agreements in the final month of last year was noted at 1,526.
In monitory terms, this equated to £62m in the value of new business.
Habito teams up with author to create erotic short story
Looking to the three months to December, the number of new agreements was down 30% at 5,100, which equated to £205m – a 37% drop.
On an annual basis, the number of new agreements was 17,109, a 39% decease year-on-year.
Overall, this number of agreements meant the value of new business over 2020 was £727m.
Fiona Hoyle, head of consumer and mortgage finance at the Finance & Leasing Association (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.”