Second charge mortgage new business volumes grew by 18% in March 2025, according to the latest data from the Finance & Leasing Association (FLA).
The value of new lending totalled £168m in March, a 23% increase compared to the same month in 2024.
Across Q1, lending was up 17% by volume and 24% by value compared to the same three months a year earlier.
In the 12 months to March there were 37,053 new plans taken out totalling £1.82bn, up 19% by volume and 27% by value compared to the previous 12 months.
Fiona Hoyle, director of consumer & mortgage finance and inclusion at the FLA, said: “The second charge mortgage market reported a strong end to the first quarter of 2025, with new business volumes up by 17% in Q1 2025 as a whole.
“The distribution of new business by purpose of loan in Q1 2025 showed that the proportion of new agreements which were for the consolidation of existing loans was 58.0%; for home improvements and the consolidation of existing loans was 22.6%; and for home improvements only was 11.8%."
