Second charge mortgages grew by 22% in October 2025

New figures released by the Finance & Leasing Association (FLA) show that second charge mortgage new business volumes grew by 22% in October 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 has reported growth in the value of new business in each month of 2025 so far. The product is proving popular with consumers who want to effectively manage loan consolidation or to fund home improvements.  New business volumes are expected to reach almost 41,000 in 2025 which would be the highest level since 2008.

“The proportion of new business volumes which were solely for the consolidation of existing loans held steady in October compared with the previous month at 59.5%.  A further 22.5% were for home improvements and loan consolidation, and 11.9% solely for home improvements.”

New second charge mortgage lending

	Oct 2025	%  change on prev. year	3 months to Oct 2025	% change on prev. year	12 months to Oct 2025	% change on prev. year
Value of new business (£m)	223	32	601	28	2,045	23
Number of new agreements (No.)	4,238	22	11,483	18	40,055	15