Second charge mortgage lending increased by 22% year on year in June to reach £177m.

The latest figures from the Finance & Leasing Association show that there were 3,505 loans in June, which was 16% higher than in the same month last year.

The total lent over the full year to June was £1.87bn, an increase of 25% on the amount lent over the year to June 2024.

More than 37,800 loans were advanced over 12 months, which was 17% higher than the previous year’s figure.

Finance and Leasing Association director of consumer and mortgage finance and inclusion Fiona Hoyle says: “June saw the second charge mortgage market report its highest level of new business by both value and volume in 2025 so far. In the first half of 2025, new business volumes were 12% higher than in the same period in 2024.”

“The distribution of new business by purpose of loan in June 2025 showed that the proportion of new agreements which were for the consolidation of existing loans was 57.6%; for home improvements and the consolidation of existing loans was 24.2%; and for home improvements only was 12.6%.”