Data from the Finance & Leasing Association (FLA) revealed that the value of new second charge mortgage business also rose – by 22% to £177m.
The FLA said both the value and volume of new business conducted in June were at their highest levels this year.
Fiona Hoyle, director of consumer and mortgage finance and inclusion at the FLA, said: “June saw the second charge mortgage market report its highest level of new business by both value and volume in 2025 so far. In the first half of 2025, new business volumes were 12% higher than in the same period in 2024.”
Business was also up when compared to the previous month.
Further, there were 9,595 new second charge agreements in the three months to June, 8% higher than the same period last year, while the value of this was 14% up at £485m.
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Over the 12 months to June, some 37,805 second charge mortgages had been agreed, 17% more than the same period a year earlier, while the value was up by a quarter at £1.87bn.
Hoyle added: “The distribution of new business by purpose of loan in June 2025 showed that the proportion of new agreements [that] were for the consolidation of existing loans was 57.6%; for home improvements and the consolidation of existing loans was 24.2%; and for home improvements only was 12.6%.
“As always, customers who are concerned about meeting payments should speak to their lender as soon as possible to find a solution.”
