Second charge lending continues growth trajectory with 27% annual rise: FLA

Second charge mortgage new business volumes grew 27% by volume and 28% by value in November compared to the same month a year earlier, the latest figures from the Finance & Leasing Association (FLA) show.

On a quarterly basis, there were 11,958 new loans approved in the three months to November with a value of £628m - up 23% by volume and 32% by value compared to the same quarter in 2024.

Annually, lending is up 16% by volume to 40,886 loans with a total value of £2.09bn, up 23% compared to the previous 12 months.

Fiona Hoyle, director of consumer & mortgage finance and inclusion at the FLA, said: “The second charge mortgage market has reported growth in new business volumes in all but one month in 2025 so far and is ending the year growing as strongly as it began it.

“The proportion of new business volumes which were solely for the consolidation of existing loans fell in November compared with the previous month at 58.0%. A further 22.4% were for home improvements and loan consolidation, and 10.8% solely for home improvements."