The value of second charge mortgage lending in September increased by 36% year on year to £202m.

The latest figures from the Finance & Leasing Association show that September’s second charge lending by volume was 22% higher year on year at 3,786.

The total value of loans for the year to August was 24% higher than the corresponding period of 2024 at £1.991bn.

The total number of loans for the year to August was 15% higher than the same period a year earlier at 39,295.

“September saw the second charge mortgage market report its strongest monthly growth in the value of new business in 2025 so far, to reach the highest monthly total since June 2008.”

“This was set against a backdrop of growth across most of the main consumer finance products provided by FLA members. In the nine months to September 2025, new business volumes in the second charge mortgage market were 13% higher than in the same period in 2024.

“The proportion of new business volumes which were solely for the consolidation of existing loans increased slightly in September compared with the previous month to 59.5%.

“As always, customers who are concerned about meeting payments should speak to their lender as soon as possible to find a solution.”

Last month, the FLA reported that the value of second charge mortgage lending in August increased by 16% year on year to £176m.