The number of new deals in the month came to 2,689, down by 14 per cent on the same point of last year. The value of new deals, at £126m, is down by the same level year-on-year.

When looking on a quarterly basis, both the number and value of new second charge deals are down by seven per cent.

Despite this drop, on an annual basis both are still up on the previous 12 months. There were 32,137 agreements in the 12 months to July 2023, which is up by two per cent, while the value of new deals is up by five per cent at £1.483bn.

Economy is making people cautious

Fiona Hoyle (pictured), director of consumer and mortgage finance and inclusion at the FLA, said this drop reflected more cautious sentiment among borrowers as a result of the current economic environment.

She continued: “The average advance in July was £46,759, a similar level to the same month in 2022. As always, customers who are concerned about meeting payments should speak to their lender as soon as possible to find a solution.”

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