The figures marked the market’s first shrinkage of new business volumes since April last year.
Fiona Hoyle, director of consumer finance and mortgages and inclusion at the FLA, said: “May saw the second charge mortgage market report its first contraction in new business volumes since April 2025. Despite this, new business volumes grew by 17% in the first five months of 2026.
“Demand is expected to remain resilient over the coming months as households seek flexible funding for home improvements, loan consolidation and other major expenses. Second charge mortgages continue to provide a valuable option for consumers looking to manage their finances effectively.”
The figures in detail
In May 2026, the value of new business reached £175m, an increase of 9% compared with the same period last year. The number of new agreements in May stood at 3,245, a decrease of 1% year-on-year.
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Over the three months to May 2026, the value of new business reached £594m, up 25% on the previous year, while the number of new agreements rose by 13% to 10,878.
Over the 12 months to May 2026, the value of new business reached £2.355m, an increase of 28% compared with the previous year, while the number of new agreements rose by 19% to 44,402.
