Second charge mortgage new business fell 6% by value and 12% by volume during February, according to latest figures released today by the Finance & Leasing Association (FLA).

There were £76m worth of second charge mortgages completed during the month.

Consumer finance new business fell 3% in February, compared with the same month in 2016.

Credit card and personal loan new business together fell by 4% compared with February 2016, while retail store and online credit new business was down by 5%.

Geraldine Kilkelly, head of research and chief economist at the FLA, said: “The fall in new business in February was the first monthly contraction since January 2015.

“The latest research by Oxford Economics, on behalf of the FLA, suggests that total UK new consumer credit is expected to grow at a more modest rate in 2017 as a whole than in recent years.”

Harry Landy, sales director at Enterprise Finance, added: “The second charge market had a slow start to the year, as today’s figures attest. However, we are expecting to see confidence building and growth returning in the coming months.

“The industry needs to work together to raise awareness of the benefits second charge mortgages can offer. This is particularly important when we engage with intermediaries so they are equipped to best advise their clients.”