Second charge lending sees first monthly fall since 2023: FLA

Second charge mortgage new business volumes fell by 2% in April 2025, according to the latest figures from the Finance & Leasing Association (FLA).

There were 2,897 new agreements in April, down 2% on the same month in 2024. However, quarterly lending (February-April) was 8% higher than a year ago, with annual lending up 16%.

By value, new business increased by 7% to £148m in April, with quarterly lending up 16% and annual growth rising 24%.

Fiona Hoyle, director of consumer & mortgage finance and inclusion at the FLA, said: “April saw the second charge mortgage market report its first fall in new business volumes since November 2023 as consumer confidence about the economic outlook dipped. In the first four months of 2025, new business volumes were 12% higher than in the same period in 2024.

“The distribution of new business by purpose of loan in April 2025 showed that the proportion of new agreements which were for the consolidation of existing loans was 55.0%; for home improvements and the consolidation of existing loans was 24.1%; and for home improvements only was 13.3%."