Second charge mortgage new business volumes increased by 24% in January 2025, according to research from the Finance & Leasing Association (FLA).
Research found that the value of new business rose to £146m, reflecting a 29% increase compared to the previous year.
Over the three months leading up to January 2025, new business was valued at £434m, up by 31%, while the 12 months to January 2025 saw a 26% increase, bringing the total to £1.759bn.
The number of new agreements reached 2,907 in January 2025, marking a 24% rise from the previous year.
Fiona Hoyle, director of consumer & mortgage finance and inclusion at the FLA, said: “The second charge mortgage market made a positive start to 2025, with double-digit growth in new business by value and volume.
“The distribution of new business by purpose of loan in January 2025 showed that the proportion of new agreements which were for the consolidation of existing loans at 58.5%; for home improvements and the consolidation of existing loans at 23.0%; and for home improvements only at 12.2%.”
Hoyle added: “As always, customers who are concerned about meeting payments should speak to their lender as soon as possible to find a solution.”
