The second charge mortgage market recorded continued growth in August, with new business volumes rising by 10% year-on-year, according to the latest figures from the Finance & Leasing Association (FLA).
New lending reached £176m across 3,459 new agreements during the month.
Over the three months to August, lending totalled £554m, up 20% on the same period in 2024, while annual lending to August reached £1.94bn, a 23% increase year-on-year.
Fiona Hoyle, director of consumer and mortgage finance and inclusion at the FLA, said: “The second charge mortgage market continued to report double-digit growth in August but at a slower rate than in recent months.
“In the eight months to August 2025, new business volumes were 12% higher than in the same period in 2024.
“The proportion of new business volumes which were solely for the consolidation of existing loans increased in August to 59.4%, the highest proportion so far this year.
“As always, customers who are concerned about meeting payments should speak to their lender as soon as possible to find a solution.”
The latest figures reflect sustained demand for second charge products, which allow homeowners to raise funds against existing equity for purposes such as debt consolidation, home improvement or major purchases.
