Second charge market records busiest month of 2025

Second charge mortgage lending was up by 16% in June, according to the latest figures from the Finance & Leasing Association (FLA).

There were 3,505 new agreements in June, up 22% by value to £177m.

On a quarterly basis, second charge lending was up 8% by number and 14% by value compared to Q2 2024.

In the 12 months to June, lending rose 17% by volume and 25% by value compared to the previous year.

Fiona Hoyle, director of consumer & mortgage finance and inclusion at the FLA, said: "June saw the second charge mortgage market report its highest level of new business by both value and volume in 2025 so far. In the first half 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 June 2025 showed that the proportion of new agreements which were for the consolidation of existing loans was 57.6%; for home improvements and the consolidation of existing loans was 24.2%; and for home improvements only was 12.6%."