Second charge lending dips 3% in August: FLA

Second charge mortgage new business volumes fell by 3% in August compared to the same month in 2025, the latest figures from the Finance & Leasing Association (FLA) show.

While annual lending fell for the second time in 2026, lending volumes remain 11% higher in 2026 so far compared to the same eight months in 2025. Meanwhile, the value of lending was 4% higher on an annual basis at £183m.

In the three months to August, lending remained 7% higher by value and 3% up by volume. In the year to August, lending is 24% higher by value and 16% by volume compared to the previous 12 months.

Fiona Hoyle, director of consumer finance and mortgages and inclusion at the FLA, said: “The second charge mortgage market reported lower new business volumes, year-on-year, for only the second time this year. In the eight months to August 2026, the number of new second charge mortgages increased by 11%.

“While new business volumes eased slightly in August, the second charge mortgage market continues to perform well by historical standards. Growth over the year to date highlights the sector’s resilience and its importance in providing consumers with flexible borrowing options. Looking ahead, lenders remain well placed to support customers’ financing needs, although activity is likely to reflect wider pressures on household confidence.”