Second charge mortgage lending dips for first time in a year: FLA

Second charge mortgage new business volumes fell by 1% in May, the first contraction in new business volumes since April 2025, the latest figures from the Finance & Leasing Association (FLA) show.

Despite the monthly dip, new business volumes grew by 17% in the first five months of 2026.

In the three months to May, lending was up 25% by value and 13% by volume compared to the same quarter in 2025.

On an annual basis, lending is up 28% by value and 19% by volume in the 12 months to May compared to the previous year.

Fiona Hoyle, director of consumer finance and mortgages and inclusion the FLA, said: “May saw the second charge mortgage market report its first contraction in new business volumes since April 2025. Despite this, new business volumes grew by 17% in the first five months of 2026.
 
“Demand is expected to remain resilient over the coming months as households seek flexible funding for home improvements, loan consolidation and other major expenses. Second charge mortgages continue to provide a valuable option for consumers looking to manage their finances effectively.”