Second charge mortgage volumes fell by 2% in September compared to the same month before to stand at 1,693, figures from the Finance & Leasing Association show.
New second charge business from July to September 2017 stood at 5,594, which is still 11% higher than the corresponding period in 2016.
Fiona Hoyle, head of consumer and mortgage finance at the Finance & Leasing Association, said: “The fall in new business volumes in September comes amid subdued consumer confidence which has affected the housing market as a whole.
“It follows six consecutive months of growth in second charge mortgage new business volumes which grew by 11% in the first nine months of 2017 to 16,043.
“Lenders are continuing to embed the new regulatory regime which puts first and second charge mortgage regulation on the same footing.”