Second charge mortgage new business volumes grew by 9% in February 2025, according to the latest figures from the Finance & Leasing Association (FLA).
The data revealed that 3,071 new agreements were completed during the month, with a total value of £156m, representing a 20% increase in value compared to the same period last year.
The statistics highlight that debt consolidation remains the primary purpose for second charge borrowing, with 58.1% of new agreements being used for the consolidation of existing loans.
Combined home improvements and loan consolidation accounted for 22.9% of new business, while home improvements only represented 11.1% of agreements.
The longer-term figures show continued growth in the sector, with the three months to February seeing 8,483 new agreements worth £431m, representing increases of 16% and 27% respectively compared to the same period in 2024.
The 12 month figures to February showed 36,519 new agreements worth £1,784m, up 18% and 26% year-on-year.
Fiona Hoyle, director of consumer & mortgage finance and inclusion at the Finance & Leasing Association (FLA), said: “The second charge mortgage market reported further growth in February but at a slower pace than in recent months.
“As always, customers who are concerned about meeting payments should speak to their lender as soon as possible to find a solution.”
