The second charge mortgage market recorded its first fall in new business volumes since November 2023, according to the latest figures from the Finance & Leasing Association (FLA).
Volumes fell by 2% in April 2025 compared with the same month in 2024, while the value of new business grew by 7% to £148m.
Despite the monthly dip, new business volumes over the first four months of the year remain 12% higher than the same period in 2024, with a total of 9,396 new agreements worth £471m recorded in the 3 months to April.
Fiona Hoyle, director of consumer & mortgage finance and inclusion at the FLA, said: “April saw the second charge mortgage market report its first fall in new business volumes since November 2023 as consumer confidence about the economic outlook dipped.
“In the first four months of 2025, new business volumes were 12% higher than in the same period in 2024.
“The distribution of new business by purpose of loan in April 2025 showed that the proportion of new agreements which were for the consolidation of existing loans was 55.0%; for home improvements and the consolidation of existing loans was 24.1%; and for home improvements only was 13.3%.
“As always, customers who are concerned about meeting payments should speak to their lender as soon as possible to find a solution.”
Matt Tristram, director at Loans Warehouse, said: “Whilst headlines may focus on a small monthly dip, the message is clear, the second charge industry continues to grow!!
“It’s the first fall in new business volumes since November 2023, and new business volumes were 12% higher than in the same period in 2024.
“These are fantastic statistics and continue to show the momentum and change in attitude towards second charge lending brought about by consumer duty, positive commentary and hard work by brokers promoting the industry side by side with lenders in network channels.”
