Second charge new business volumes see second fall this year – FLA
Second charge mortgage new business volumes decreased 3% year-on-year in August, with 3,347 agreements over the month.
Despite this, data from the Finance and Leasing Association (FLA) showed that the value of business increased by 4% to £183m.
August’s figures were also down on July, which saw 3,919 agreements at a total value of £205m.
Growth was better year to date, as agreements increased by 16% to 44,709 in the 12 months to August, and the value of second charge mortgage business rose 24% to £2.4bn.
In the three months to August, the FLA recorded a 3% increase in the number of new agreements, totalling 11,113, while the value of business rose 7% to £595m.
Fiona Hoyle, director of consumer finance and mortgages and inclusion at the FLA, said: “The second charge mortgage market reported lower new business volumes, year-on-year, for only the second time this year. In the eight months to August 2026, the number of new second charge mortgages increased by 11%.
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“While new business volumes eased slightly in August, the second charge mortgage market continues to perform well by historical standards. Growth over the year to date highlights the sector’s resilience and its importance in providing consumers with flexible borrowing options. Looking ahead, lenders remain well placed to support customers’ financing needs, although activity is likely to reflect wider pressures on household confidence.”
