New business volumes in the second charge mortgage market rose by 22% in September 2025 compared with the same month last year, according to the latest figures from the Finance & Leasing Association (FLA).
The value of new lending also increased sharply, reaching £202m – the highest monthly total since June 2008.
Over the three months to September, new lending totalled £579m, up 25% year-on-year, while the number of new agreements reached 11,108, an increase of 15%.
Across the 12 months to September, the market recorded £1.99bn in new business, with agreement volumes rising to 39,295, both up 24% and 15% respectively.
The data also showed a slight increase in the proportion of borrowers using second charge mortgages solely for debt consolidation, rising to 59.5% during the month.
Fiona Hoyle, director of consumer and mortgage finance and inclusion at the FLA, said: “September saw the second charge mortgage market report its strongest monthly growth in the value of new business in 2025 so far, to reach the highest monthly total since June 2008.
“This was set against a backdrop of growth across most of the main consumer finance products provided by FLA members. In the nine months to September 2025, new business volumes in the second charge mortgage market were 13% higher than in the same period in 2024.
“The proportion of new business volumes which were solely for the consolidation of existing loans increased slightly in September compared with the previous month to 59.5%.
“As always, customers who are concerned about meeting payments should speak to their lender as soon as possible to find a solution.”
