The volume of new second charge mortgage lending dropped by 52% year-on-year in August 2020, according to data from the Finance & Leasing Association (FLA).

The total value of new business in the second charge mortgage market dropped by 57% to £43m in August, at a total of 1,134 transactions during the month.

In the three months to August, the value of new business was £110m, and the number of new agreements was 2,761.

In the year to August, new business was valued at a total of £898m, and the number of new agreements stood at 20,250; both figures showed a 24% drop compared to the previous year.

Fiona Hoyle, head of consumer and mortgage finance at the FLA, said: “While the second charge mortgage market remains subdued compared with pre-crisis levels, it is encouraging to see the number of new mortgages increase month-on-month since the record-low 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.”