The latest figures from the Finance & Leasing Association show that October’s second charge lending by volume was 22% higher year on year at 4,238.

The total value of loans for the year to October was 23% higher than the corresponding period of 2024 at £2,045bn.

The total number of loans for the year to October was 15% higher than the same period a year earlier at 40,055.

FLA director of consumer and mortgage finance and inclusion Fiona Hoyle says: “The second charge mortgage market has reported growth in the value of new business in each month of 2025 so far.”

“The product is proving popular with consumers who want to effectively manage loan consolidation or to fund home improvements.”

“New business volumes are expected to reach almost 41,000 in 2025 which would be the highest level since 2008.”

“The proportion of new business volumes which were solely for the consolidation of existing loans held steady in October compared with the previous month at 59.5%.”

“A further 22.5% were for home improvements and loan consolidation, and 11.9% solely for home improvements.”

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