The latest figures from the Finance & Leasing Association (FLA) show that the value of new second charge business in October was £223m, an increase of 32% on the same period last year.
The report noted that in the three months to October, the number of new agreements came to 11,482, which is an 18% jump on the same period in 2024.
Looking at the value of new second charge business in the three months to October 2025, this increased 28% year-on-year to £601m.
In the 12 months to October, the number of new second charge agreements stood at 40,055, with the value coming to £2bn. These are respective increases of 15% and 23% compared to the same period last year.
Fiona Hoyle, director of consumer and mortgage finance and inclusion at the FLA, said: “The second charge mortgage market has reported growth in the value of new business in each month of 2025 so far. The product is proving popular with consumers who want to effectively manage loan consolidation or to fund home improvements. New business volumes are expected to reach almost 41,000 in 2025 which would be the highest level since 2008.
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“The proportion of new business volumes [that] were solely for the consolidation of existing loans held steady in October compared with the previous month at 59.5%. A further 22.5% were for home improvements and loan consolidation, and 11.9% solely for home improvements.
“As always, customers who are concerned about meeting payments should speak to their lender as soon as possible to find a solution.”
