Second charge mortgage new business volumes down 1% by volume and up 9% by value in May 2026, according to figures from the Finance & Leasing Association.

There was £175 million of new business agreed in May, with 3,245 new agreements in the month.

The three months to May saw £594 million of new second charge business, comprising 10,878 loans.

There was £2.35 billion of new second charge business written in the year to May, a rise of 13%, with 44,402 loans, an increase of 19%.

Finance & Leasing Association director of consumer finance and mortgages and inclusion Fiona Hoyle says: “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.”