Second charge mortgages hits highest level since 2008

New figures released by the Finance & Leasing Association (FLA) show that second charge mortgage new business volumes grew by 27% in February 2026.

Commenting on the latest new business figures for the second charge mortgage market, Geraldine Kilkelly, Director of Research and Chief Economist at the Finance & Leasing Association (FLA), said “The second charge mortgage market reported robust new business growth in February, with new business by value reaching its highest February level since 2008.

“By providing a secured alternative to higher‑cost unsecured borrowing, second‑charge mortgages are proving popular with households as they help to manage affordability pressures while maintaining financial stability.

“The UK economy now faces a more challenging outlook, as the conflict in the Middle East is likely to weigh on activity, confidence and financial conditions.  In this environment, the second charge mortgage market will continue to play an important role in supporting household budgeting, while affordability considerations and wider uncertainty shape the pace of growth in the months ahead.”

 New second charge mortgage lending

	Feb 2026	%  change on prev. year	3 months to Feb 2026	% change on prev. year	12 months to Feb 2026	% change on prev. year
Value of new business (£m)	214	37	579	34	2,237	25
Number of new agreements (No.)	3,904	27	10,739	27	43,142	18