Second charge mortgage lending continued to grow in July, with £205 million of new business recorded during the month, according to the Finance & Leasing Association.

The figure was 2% higher than in July 2025, while lending over the three months to July reached £585 million, an increase of 9% on the same period a year earlier.

The longer-term figures showed stronger growth, with £2.384 billion of second charge mortgage lending completed in the 12 months to July 2026, up 25% year on year.

WIDER CONSUMER FINANCE MARKET EASES

The growth in second charge lending contrasted with a slight decline across the wider consumer finance market during July.

FLA members provided £10.324 billion of new consumer credit during the month, 1% lower than in July 2025. Over the three months to July, total new business increased by 2%, while lending during the 12 months to July was 5% higher at £125.737 billion.

Credit cards and personal loans recorded £5.45 billion of new business in July, down 2% year on year, while retail store and online credit fell by 3% to £656 million.

Car finance new business was unchanged from a year earlier at £3.368 billion.

Geraldine Kilkelly, director of research and chief economist at the FLA, said: “Consumer finance new business eased slightly in July, but the broader picture remains one of resilience.

“New business has grown by 4% in the year to date, highlighting the important role credit continues to play in helping households manage spending and make major purchases.

“As the Autumn Budget approaches, the government should focus on creating the conditions for consumer confidence to recover further.

“Measures that support household finances and encourage employment would help sustain spending and contribute to more durable economic growth.”