New figures from the Finance & Leasing Association show the second charge mortgage market ended 2025 on a strong footing, with activity rising sharply towards the end of the year.

In December 2025, the value of new business reached £182 million, up 41% compared with the same month in 2024. The number of new agreements also increased by 35% year-on-year to 3,379.

Over the final three months of the year, lending totalled £608 million, representing a 33% increase compared with the same period in 2024. The number of agreements during the quarter rose by 27% to 11,551.

Across the full 12 months to December 2025, the value of new business reached £2.142 billion, up 24% year-on-year, while the number of agreements rose by 17% to 41,760.

Fiona Hoyle, director of consumer & mortgage finance and inclusion at the Finance & Leasing Association, said: “The second charge mortgage market ended 2025 on a strong note with new business volumes up 35% in December compared with the same month in 2024.

“In 2025 as a whole, new business by both value and volume reached its highest level since 2008.”

Hoyle added that the purposes behind second charge borrowing remained broadly stable across the year.

“The analysis of loan purpose suggests a stable picture with the proportion of new business volumes which were solely for the consolidation of existing loans last year at 58.3%.

“A further 23.0% were for home improvements and loan consolidation, and 12.0% solely for home improvements.”

Industry participants also reported growing demand for associated services as activity increased.

James Gillam, managing director at Pure Panel Management, said: “At Pure Panel Management, we have seen strong growth in second charge surveying demand through our second charge lender and broker partners in 2025.

“It is not just existing lenders doing more. New entrants have moved quickly to win share after launch, and they have also helped increase total market size, not merely swap business between firms.

“As volumes rise and these new brands scale up, lenders and brokers need surveying partners who can cope with demand, cover the right areas, and keep cases moving.

“Those who pick the right partners with experience in the sector will be the ones who keep service steady as the market keeps growing.”