Second charge lending rose 36% by value and 22% by volume in September, marking the strongest monthly growth this year and the highest total since 2008, according to the Finance & Leasing Association (FLA).
There were 3,786 new agreements taken out in September, totalling £202m.
On a quarterly basis, lending rose 25% by value and 15% by volume in Q3 compared to the same three months in 2024.
In the 12 months to September, second charge lending is up 24% by value and 15% by volume compared to the previous year.
Fiona Hoyle, director of consumer and mortgage finance and inclusion at the FLA, said: “September saw the second charge mortgage market report its strongest monthly growth in the value of new business in 2025 so far, to reach the highest monthly total since June 2008.
"This was set against a backdrop of growth across most of the main consumer finance products provided by FLA members. In the nine months to September 2025, new business volumes in the second charge mortgage market were 13% higher than in the same period in 2024.
“The proportion of new business volumes which were solely for the consolidation of existing loans increased slightly in September compared with the previous month to 59.5%."
The latest data from the FLA also shows that total asset finance new business in September grew by 11% compared with the same month in 2024. In the nine months to September, new business was 2% higher than in the same period in 2024.
