Commenting on the latest new business figures for the second charge mortgage market, Geraldine Kilkelly, Director of Research and Chief Economist at the Finance & Leasing Association (FLA), said:
“The second charge mortgage market reported robust new business growth in February, with new business by value reaching its highest February level since 2008.
“By providing a secured alternative to higher‑cost unsecured borrowing, second‑charge mortgages are proving popular with households as they help to manage affordability pressures while maintaining financial stability.
“The UK economy now faces a more challenging outlook, as the conflict in the Middle East is likely to weigh on activity, confidence and financial conditions. In this environment, the second charge mortgage market will continue to play an important role in supporting household budgeting, while affordability considerations and wider uncertainty shape the pace of growth in the months ahead.”
Table 1: New second charge mortgage lending
| Feb 2026 | %
change on prev. year |
3 months to Feb 2026 | % change on prev. year | 12 months to Feb 2026 | % change on prev. year | |
| Value of new business (£m) | 214 | 37 | 579 | 34 | 2,237 | 25 |
| Number of new agreements (No.) | 3,904 | 27 | 10,739 | 27 | 43,142 | 18 |
Note to editors:
- 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.
