There was a time when second charge mortgages were the financial equivalent of straight-to-DVD sequels. Niche. Messy. Easy to ignore. Not anymore.
The latest lending data shows the spin-off has become the main attraction. According to the Finance & Leasing Association (FLA), second charge lending rose by 24% in the first three months of this year compared to 2024. Volumes were up 17%. More than 9,400 new agreements. £469 million lent. This sequel has made it to the box office.
A big part of this is simple economics. People who borrowed in 2021 don’t want to let go of those rates. You wouldn’t refinance a mortgage fixed at 1.8% unless you absolutely had to. That is not a decision. That is muscle memory. Retain the low-cost borrowing already in place and structure any additional finance around it.
So they do. And second charges have become the vehicle of choice. A bit of debt consolidation here. Some home improvement there. In Q1, 58% of loans were for consolidation. Another 34% were tied to home renovations. Bathrooms, kitchens, lofts. The story of 2025 is people borrowing more, not because they have to, but because they still can.
What’s changed is not the product, but the context. Rising costs, higher fixed rates, and a mortgage market that’s only just remembering what competition feels like. Second charges fit the gap between reality and the Bank of England.
Still, many brokers look the other way. Some say they don’t know enough. Others say they refer it out. That worked when the market was easy. It does not work now.
Under Consumer Duty, overlooking second charge options without good reason may no longer be defensible. If you’re giving mortgage advice in 2025, you need to recognise when a second charge could be appropriate. You don’t need to be a specialist, but you are expected to consider a range of solutions. Clients expect informed guidance. The regulator expects you to show your workings. Saying “I don’t do seconds” is becoming increasingly difficult to justify.
And these are not emergency loans or worst-case scenario products. They are, more often than not, a way to deal with affordability pressures without surrendering a competitive first charge deal. Second charges let borrowers hold on to what works and layer in what they need. For brokers, they can open up revenue and reinforce the idea that real advice means showing your client the full picture.
There is also the small matter of income. Second charge cases can offer strong returns. Brokers looking to steady the ship while first charge volumes drift now have a very obvious place to turn.
But it all hinges on having the right infrastructure in place. And that includes robust, reliable valuations.
At Pure Panel Management, we play a key role in helping second charge lenders and brokers progress cases by providing timely, accurate property valuations. Whether it’s a desktop report or a full inspection, our focus is on clear, consistent reporting that helps lenders make decisions quickly and confidently.
We support lenders and intermediaries alike by ensuring valuation data is not a bottleneck. Our experienced team understands the nuances of second charge lending, from equity positions to refurbishment value, and by working closely with a range of lender panels, we help maintain consistency across the board. There needs to be collaboration between lenders, brokers and valuers to keep cases moving, and that is what we are here for.
The second charge sector is no longer a side plot. It is not a twist. It is not a cameo from a long-forgotten product category. It is the story. And if my beloved Newcastle United can win the Carabao Cup, anything is possible.
There are no dramatic reforms. No flashy regulation. Just more borrowers, more cases, and more brokers getting involved. That is how trends start. Slowly, then suddenly.
It is not a revolution. It is the plot advancing. Finally.
