Figures from the Finance & Leasing Association (FLA) show that the value of new second charge business in March came to £168m, which is a jump of 23% on the same period last year.
This follows on from growth in February, where the number of new agreements rose 9% and the value of new business was 20% up year-on-year.
In the three months to March, the value of new business climbed by 24% year-on-year to £469m, while the number of new agreements increased by 17% to 9,406.
The report noted that in the 12 months to March, the value of new business was estimated at £1.8bn, a jump of 27% compared to the same period last year.
The number of new agreements came to 37,053 over the same period, an increase of 19% year-on-year.
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Fiona Hoyle, director of consumer and mortgage finance and inclusion at the FLA, said: “The second charge mortgage market reported a strong end to the first quarter of 2025, with new business volumes up by 17% in Q1 2025 as a whole.
“The distribution of new business by purpose of loan in Q1 2025 showed that the proportion of new agreements [that] were for the consolidation of existing loans was 58%; for home improvements and the consolidation of existing loans was 22.6%; and for home improvements only was 11.8%.
“As always, customers who are concerned about meeting payments should speak to their lender as soon as possible to find a solution.”
