Second charge lending rises 19% in January: FLA

Second charge mortgage new business volumes grew by 19% in January 2026, the latest Finance & Leasing Association (FLA) figures show.

There were 3,456 new second charge lending agreements in January totalling £183m, up 19% by volume and 26% by value.

In the three months to January, lending was up 26% by volume and 31% by value.

In the year to January, there were 42,309 new lending agreements, up 17%, totalling more than £2.1bn - 24% higher than the previous year.

Fiona Hoyle, director of consumer & mortgage finance and inclusion at the FLA, said: “The second charge mortgage market made a positive start to 2026 although the pace of growth slowed slightly compared with recent months.

“Following the FCA’s recent report on second charge mortgages, the FLA will be working closely with the regulator to understand their findings as we continue to support customers who want to consolidate higher-interest rate loans into more affordable borrowing.”

James Gillam, managing director at Pure Panel Management, commented: “At Pure Panel Management, we continue to see strong momentum in second charge surveying activity and Q1 2026 is looking like being a record quarter for second charge valuation instructions, reflecting the wider growth in lending volumes across the market.

“This time of year especially places greater emphasis on the valuation process and speed of funding as a whole, as many loans at this time of year are needed for debt consolidation and so lenders and brokers need partners who can respond quickly while maintaining the coverage and consistency required to keep cases progressing.”