According to the latest Finance & Leasing Association (FLA) figures, the number of new second charge agreements rose 10% year-on-year to 3,459.
Looking at the three months to August 2025, the value of new second charge business was £554m, an increase of 20% on the same period last year.
The number of new second charge agreements rose 14% year-on-year to 10,827.
In the 12 months to August 2025, the value of new business was £1.9bn, up 23% year-on-year.
The number of new second charge agreements increased by 16% to 38,614 over the same period.
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Fiona Hoyle, director of consumer and mortgage finance and inclusion at the FLA, said: “The second charge mortgage market continued to report double-digit growth in August, but at a slower rate than in recent months. In the eight months to August 2025, new business volumes were 12% higher than in the same period in 2024.
“The proportion of new business volumes [that] were solely for the consolidation of existing loans increased in August to 59.4%, the highest proportion so far this year.
“As always, customers who are concerned about meeting payments should speak to their lender as soon as possible to find a solution.”
