Commenting on the latest new business figures for the second charge mortgage market, Fiona Hoyle, Director of Consumer Finance & Mortgages and Inclusion the Finance & Leasing Association (FLA), said:
“May saw the second charge mortgage market report its first contraction in new business volumes since April 2025. Despite this, new business volumes grew by 17% in the first five months of 2026.
“Demand is expected to remain resilient over the coming months as households seek flexible funding for home improvements, loan consolidation and other major expenses. Second charge mortgages continue to provide a valuable option for consumers looking to manage their finances effectively.”
Table 1: New second charge mortgage lending
| May 2026 | %
change on prev. year |
3 months to May 2026 | % change on prev. year | 12 months to May 2026 | % change on prev. year | |
| Value of new business (£m) | 175 | 9 | 594 | 25 | 2,355 | 28 |
| Number of new agreements (No.) | 3,245 | -1 | 10,878 | 13 | 44,402 | 19 |
Note to editors:
- The FLA Impact Report 2026, The Hidden Engine Behind UK Growth, was published on 29 June 2026. Further details may be found here.
- FLA members in the consumer finance sector include banks, credit card providers, store card providers, second-charge mortgage lenders, motor finance providers, personal loan and instalment credit providers.
- In 2025, FLA members provided £163 billion of new finance to UK businesses and households. £122 billion of this was in the form of consumer credit, representing almost a third of total new consumer credit written in the UK in 2025.
- For media enquiries, please contact the FLA press office on 020 7420 9656.
