Second charge mortgage new business volumes grew by 11% in May 2025 compared with the same month in 2024, according to the latest figures from the Finance & Leasing Association (FLA).
The market recorded its second highest monthly total so far this year, both by value and volume.
Fiona Hoyle, director of consumer and mortgage finance and inclusion at the FLA, said: “The second charge mortgage market returned to growth in May, reporting its second highest total of new business so far this year by both value and volume.
“In the five months to May 2025, new business volumes were 11% higher than in the same period in 2024.”
In terms of loan purpose, the distribution of new business in May showed that 58.9% of new agreements were for the consolidation of existing loans.
A further 22.4% were for home improvements combined with loan consolidation, while 11.9% were for home improvements alone.
Matt Tristram, co-founder and director at Loans Warehouse, said: “It’s encouraging to see the second charge market maintaining consistent growth, with May marking one of the strongest months this year.
“What stands out to us is the growing diversity in lender activity – more providers are sharing the market, which is driving competition, product development and, ultimately, better outcomes for brokers and their clients.”
