A few weeks into 2026, the direction of travel for the second charge mortgage market is already clear. Momentum has carried over from last year, with growth in both lending volumes and broker usage now well established.
The latest figures from the Finance & Leasing Association show that strength in the second charge market has been sustained rather than short-lived. New business volumes grew in all but one month of 2025, with the market ending the year as strongly as it began it. By November 2025, the value of new lending reached £203 million, up 28% from the previous year, underlining a pattern of consistent growth.
Borrowers are increasingly seeing the value in second charges, and importantly, more brokers are now treating them as a mainstream solution.
In our conversations with advisers, we’re seeing a real shift. Second charge mortgages are no longer the “last resort” they once were perceived to be. They’re now viewed as a viable option for a growing number of client scenarios.
RELUCTANCE
A major factor in the growth of the market is the reluctance among borrowers to touch their existing mortgage.
Over the past 18 months, thousands of borrowers have locked into historically low first charge deals. With base rate movements making remortgaging less attractive, second charges have stepped in as the sensible alternative.
Rather than give up a 1.5% or 2% mortgage, many clients would rather take out a second charge to raise funds without disturbing their existing deal or incurring early repayment charges.
FLEXIBILITY
We’ve also seen growing awareness of the flexibility second charges offer. At Norton Broker Services, we’ve packaged loans for everything from school fees and business investment to high-cost personal goals such as equestrian facilities, pilot training and even holiday homes.
One of the biggest changes we’ve noticed is how brokers are now thinking differently about second charges. It’s a shift we’ve long championed. For years, second charges were underused, not because they weren’t suitable, but because brokers either didn’t have the permissions or weren’t aware of how to access them. That’s changed.
Thanks to better education, easier referral routes and more broker support, advisers now know they don’t need to walk away from a case just because a remortgage won’t work. They can offer a real solution.
We expect the strong growth to continue. We’re still seeing cases where second charges offer clients clear advantages. They’re also a lifeline for the self-employed, for people with complex incomes, or for those with historic credit blips.
And with more lenders entering the space and existing ones expanding their criteria, there will be more solutions available to meet client needs.
At Norton Broker Services, we remain committed to helping brokers support more clients with second charge solutions. Whether it’s packaging a case or providing guidance on suitability, we’re here to support advisers in making the most of this growing part of the market.
2026 won’t be about introducing second charges to brokers for the first time.
It’ll be about making them part of everyday advice.
