The value of new second charge mortgage business reached £205 million in June 2026, up 16% from a year earlier, according to the Finance & Leasing Association.
Lenders completed 3,828 new agreements during the month, an annual increase of 9%.
New lending totalled £571 million in the three months to the end of June, 18% more than in the same period of 2025. The number of agreements rose by 9% to 10,577.
Over the 12 months to June, the value of new business increased by 27% to £2.38 billion, while the number of agreements grew by 18% to 44,725.
Loan consolidation accounted for at least 60% of new business.
Fiona Hoyle, director of consumer finance and mortgages and inclusion at the Finance & Leasing Association, said: “The second charge mortgage market returned to growth in June and delivered a strong second quarter overall, reflecting continued demand from homeowners looking to manage their finances effectively.
“The fact that loan consolidation accounted for at least 60% of new business highlights the important role second charge mortgages play in helping consumers refinance existing borrowing without disturbing their primary mortgage arrangements.
“The FCA’s recent review highlighted important areas for the second charge mortgage market. The FLA and its members are considering the findings carefully, with a clear focus on supporting good outcomes for customers.”
