Second charge mortgage new business grew by 17% in 2025

New figures released by the Finance & Leasing Association (FLA) show that second charge mortgage new business volumes grew by 17% in 2025.

Commenting on the latest new business figures for the second charge mortgage market, Fiona Hoyle, Director of Consumer & Mortgage Finance and Inclusion at the Finance & Leasing Association (FLA), said “The second charge mortgage market ended 2025 on a strong note with new business volumes up 35% in December compared with the same month in 2024.  In 2025 as a whole, new business by both value and volume reached its highest level since 2008.

“The analysis of loan purpose suggests a stable picture with the proportion of new business volumes which were solely for the consolidation of existing loans last year at 58.3%.  A further 23.0% were for home improvements and loan consolidation, and 12.0% solely for home improvements.”

 New second charge mortgage lending

	Dec 2025	%  change on prev. year	3 months to Dec 2025	% change on prev. year	12 months to Dec 2025	% change on prev. year
Value of new business (£m)	182	41	608	33	2,142	24
Number of new agreements (No.)	3,379	35	11,551	27	41,760	17