Second charge lending sees double-digit growth in February

In February alone, the value of new business reached £156 million—up 20% compared to the same month last year. Over the three months to February 2025, the total value rose to £431 million, marking a 27% increase year-on-year. For the 12-month period to February 2025, the value of new business stood at £1.78 billion, up 26% from the previous year.

The number of new agreements also showed solid growth. In February 2025, 3,071 new agreements were recorded, an increase of 9% year-on-year. Over the latest three-month period, the number rose to 8,483 agreements, up 16%. For the 12 months to February, there were 36,519 new agreements in total—an 18% rise compared to the previous year.

These figures reflect continued demand in the second charge market, underpinned by both increased borrowing activity and rising confidence in the sector.

Fiona Hoyle, director of consumer & mortgage finance and inclusion at the Finance & Leasing Association (FLA), said:

“The second charge mortgage market reported further growth in February but at a slower pace than in recent months."

“The distribution of new business by purpose of loan in February 2025 showed that the proportion of new agreements which were for the consolidation of existing loans at 58.1%; for home improvements and the consolidation of existing loans at 22.9%; and for home improvements only at 11.1%."

“As always, customers who are concerned about meeting payments should speak to their lender as soon as possible to find a solution.”