Second charge mortgage new business volumes rose 35% by volume and 41% by value in December 2025, according to figures from the Finance & Leasing Association (FLA).

There was £182 million of new business agreed in December, up 41% and 3,379 new agreements in the month, a rise of 35%.

The three months to December saw £608 million of new second charge business, comprising 11,551 loans.

There was £2.1 billion of new second charge business written in the year to December, a rise of 27%, with 41,760 loans, an increase of 17%.

FLA director of consumer and mortgage finance and inclusion Fiona Hoyle says: “The second charge mortgage market ended 2025 on a strong note with new business volumes up 35% in December compared with the same month in 2024. In 2025 as a whole, new business by both value and volume reached its highest level since 2008.”

“The analysis of loan purpose suggests a stable picture with the proportion of new business volumes which were solely for the consolidation of existing loans last year at 58.3%.”

“A further 23.0% were for home improvements and loan consolidation, and 12.0% solely for home improvements.”