Second charge market returns to growth in June: FLA

The second charge mortgage market returned to growth in June, with new business volumes up by 9%, the latest figures from the Finance & Leasing Association (FLA) show.

Across Q2 there were 10,577 new second charge loans totalling £571m, also up 9% by volume and 18% by value compared to the same quarter in 2025.

In the year to June lending is up 18% by volume and 27% by value compared to the previous 12 months.

Fiona Hoyle, director of consumer finance & mortgages and inclusion the FLA, said: “The second charge mortgage market returned to growth in June and delivered a strong second quarter overall, reflecting continued demand from homeowners looking to manage their finances effectively.
 
“The fact that loan consolidation accounted for at least 60% of new business highlights the important role second charge mortgages play in helping consumers refinance existing borrowing without disturbing their primary mortgage arrangements.
 
“The FCA’s recent review highlighted important areas for the second charge mortgage market. The FLA and its members are considering the findings carefully, with a clear focus on supporting good outcomes for customers.”