According to the latest figures by the Finance & Leasing Association (FLA), the number of new second charge agreements during May grew by 11%, compared to the same period last year, to 3,293.
The report continued on to say that in the three months to May 2025, the value of new second charge business came to £476m, up 14% year-on-year, while the number of new agreements climbed by 9% annually to 9,618.
In the 12 months to May, the value of new second charge business grew by nearly a quarter to £1.84bn compared to the same period in the previous year.
The number of new second charge agreements in the same time frame has increased by 16% year-on-year to 37,319.
Fiona Hoyle, director of consumer and mortgage finance and inclusion at the FLA, said: “The second charge mortgage market returned to growth in May, reporting its second-highest total of new business so far this year by both value and volume. In the five months to May 2025, new business volumes were 11% higher than in the same period in 2024.
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“The distribution of new business by purpose of loan in May 2025 showed that the proportion of new agreements [that] were for the consolidation of existing loans was 58.9%; for home improvements and the consolidation of existing loans was 22.4%; and for home improvements only was 11.9%.
“As always, customers who are concerned about meeting payments should speak to their lender as soon as possible to find a solution.”
