Figures from the Finance & Leasing Association (FLA) showed the value of new business was 20% higher year-on-year at £156m, while the number of new agreements rose 9% to 3,071.
This was lower than the respective annual increases of 29% for the value of business and 24% for the number of new agreements recorded in January. On a monthly basis, however, February’s second charge mortgage business was better than January’s £146m new business value and 2,907 agreements.
In the three months to February, the value of new business came to £431m and there were 8,483 agreements, 27% and 16% higher than the same period last year respectively.
The value of new second charge mortgage business totalled £1.78bn in the 12 months to February, 26% up on the previous year. Meanwhile, the number of agreements over the period were 18% higher at 36,519.
Fiona Hoyle (pictured), director of consumer and mortgage finance and inclusion at the FLA, said: “The second charge mortgage market reported further growth in February but at a slower pace than in recent months.
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“The distribution of new business by purpose of loan in February 2025 showed that the proportion of new agreements [that] were for the consolidation of existing loans at 58.1%; for home improvements and the consolidation of existing loans at 22.9%; and for home improvements only at 11.1%.
“As always, customers who are concerned about meeting payments should speak to their lender as soon as possible to find a solution.”
