Second charge lending hits 15-year high in 2024

Second charge lending grew 17% by volume and 25% by value in 2024 compared to the previous year, according to the latest figures from the Finance & Leasing Association (FLA).

In total, there were 35,711 agreements in 2024 totalling over £1.7bn, the data shows.

On a monthly basis, in December there were 2,505 second charge lending agreements, 16% higher than in December 2023 and 35% higher by value.

Q4 saw growth of 22% by volume and 34% by value compared to the same quarter a year earlier.

Fiona Hoyle, director of consumer and mortgage finance and inclusion at the FLA, said: “The second charge mortgage market reported growth in each month of 2024, with new business volumes up by 17% in 2024 overall to reach almost 36,000 new agreements. This was the highest annual total since 2009. 

“The distribution of new business by purpose of loan in 2024 was in line with the previous year, with the proportion of new agreements which were for the consolidation of existing loans at 59.0%; for home improvements and the consolidation of existing loans at 22.9%; and for home improvements only at 12.5%."