The second charge mortgage market experienced a robust increase in activity in June, with new business volumes rising by 16% compared to the same month last year.
This marks the highest monthly level of new business by both value and volume recorded so far this year, according to the latest figures from the Finance & Leasing Association (FLA).
In terms of value, new business reached £177m in June, up 22% year-on-year.
Over the three months to June, the market saw a 14% increase in new lending value, totaling £485m.
On an annual basis, lending grew by 25% to £1.875bn.
The number of new agreements also showed strong growth, with 3,505 agreements in June representing a 16% year-on-year rise.
Over the three-month period, volumes reached 9,695 – up 8% on the previous year.
For the 12 months to June, the market recorded 37,805 new agreements, a 17% increase from the year before.
The breakdown of loan purposes in June showed that 57.6% of new agreements were for consolidating existing loans.
A further 24.2% were for a combination of home improvements and loan consolidation, while 12.6% were solely for home improvements.
Fiona Hoyle, director of consumer and mortgage finance and inclusion at the FLA, said: “June saw the second charge mortgage market report its highest level of new business by both value and volume in 2025 so far.
“In the first half 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 June 2025 showed that the proportion of new agreements which were for the consolidation of existing loans was 57.6%; for home improvements and the consolidation of existing loans was 24.2%; and for home improvements only was 12.6%.
“As always, customers who are concerned about meeting payments should speak to their lender as soon as possible to find a solution.”
