Second charge lending up by a third in Q1

Second charge lending continued its growth trajectory in Q1, the latest figures from the Finance & Leasing Association (FLA) show.

In March, the number of second charge agreements rose by 20%, with the value of new lending up 36% compared to March 2025.

In the first three months of 2026, second charge lending increased 22% by number and 33% by value compared to the same quarter in 2025.

In the 12 months to March, lending rose 18% by volume and 27% by value compared to the previous 12 months.

Fiona Hoyle, director of consumer finance & mortgages and inclusion at the FLA, said: “The second charge mortgage market continued to expand in Q1 2026, with new business up 33% by value to £625 million and volumes rising 22% to almost 11,500 new agreements, year-on-year. This reflects demand for flexible borrowing options to support household budgeting.

“These figures highlight the continued strength of the second charge mortgage market. At a time when many customers are considering their borrowing options carefully, second charge mortgages provide a flexible route to additional finance while allowing borrowers to retain their existing mortgage arrangements.”