Second charge mortgage new business volumes fell by 80% in May as the sector slowed in the face of the lockdown.
The Finance and Leasing Association said second charge faced the same fate as the majority of financial services markets with business levels stalling as uncertainty gripped the UK.
Fiona Hoyle, head of consumer and mortgage finance at the Finance & Leasing Association (FLA), said: “The severity of the lockdown restrictions on the second charge mortgage market is reflected in the record low level of new business volumes in May.
“The market, however, remains in a strong position to meet new demand and forbearance requests during the months ahead.
“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.”