Second charge mortgage market holds steady in July amid wider market slowdown
The second charge mortgage market continued to grow in July, although at a more modest pace than earlier in the year.
Second charge mortgage new business volumes grew by 1% in July, the latest figures from the Finance & Leasing Association (FLA) show.
The value of agreements rose by 2% to £205m.
In the three months to July, lending was up 3% by volume and 9% by value compared to the same quarter in 2025.
Annual growth was stronger still, up 17% by volume and 25% by value in the year to July compared to the previous 12 months.
Fiona Hoyle, director of consumer finance & mortgages and inclusion the FLA, said: “The second charge mortgage market continued to grow in July, although at a more modest pace than earlier in the year. Looking ahead, the prospect of market interest rates remaining higher for longer may continue to temper demand.
“For homeowners looking to access housing equity while retaining an existing low-rate mortgage, second charge mortgages continue to provide a flexible and attractive funding option.”
Breaking news
Direct to your inbox:
More
stories
you'll love:
This week's biggest stories:
FCA
FCA bans and fines financial adviser more than £740,000
Interest Rates
Bank Rate held at 3.75% but November rise expected
Bank Of England
Raising interest rates would reduce uncertainty and curb inflationary pressures, MPCs Pill says
Inflation
Markets price in multiple rate rises as inflation increases to 3.1%
This week's biggest stories:
FCA
FCA bans and fines financial adviser more than £740,000
Interest Rates
Bank Rate held at 3.75% but November rise expected
Bank Of England
Raising interest rates would reduce uncertainty and curb inflationary pressures, MPCs Pill says
Inflation
Markets price in multiple rate rises as inflation increases to 3.1%
Mortgage Rates
Mortgage rates see second wave of hikes ahead of this week's Bank Rate decision
In The Spotlight
'Failure to nurture the existing client base represents a significant missed opportunity': Toni Robinson-Bowring, Twenty7tec
