Second charge lending up 24% in January

Second charge mortgage new business volumes grew by 24% in January, according to the latest figures from the Finance & Leasing Association (FLA).

There were 2,907 new agreements taken out over the month, totalling £146m, which is a 29% increase compared to January 2024.

By volume, lending was up by 19% in both the three months to January and in the 12 months to January, with 36,267 plans taken out over the year.

Fiona Hoyle, director of consumer & mortgage finance and inclusion at the FLA, said: “The second charge mortgage market made a positive start to 2025, with double-digit growth in new business by value and volume.

“The distribution of new business by purpose of loan in January 2025 showed that the proportion of new agreements which were for the consolidation of existing loans at 58.5%; for home improvements and the consolidation of existing loans at 23.0%; and for home improvements only at 12.2%."