Second charge mortgage new business volumes grew by 1% in July, the latest figures from the Finance & Leasing Association (FLA) show.
The value of agreements rose by 2% to £205m.
In the three months to July, lending was up 3% by volume and 9% by value compared to the same quarter in 2025.
Annual growth was stronger still, up 17% by volume and 25% by value in the year to July compared to the previous 12 months.
Fiona Hoyle, director of consumer finance & mortgages and inclusion the FLA, said: “The second charge mortgage market continued to grow in July, although at a more modest pace than earlier in the year. Looking ahead, the prospect of market interest rates remaining higher for longer may continue to temper demand.
“For homeowners looking to access housing equity while retaining an existing low-rate mortgage, second charge mortgages continue to provide a flexible and attractive funding option.”
