Second-charge lending reaches £205m as growth settles

New second-charge lending held at £205m in July, matching June and standing 2% above July last year, according to provisional figures from the Finance & Leasing Association (FLA). The market remains ahead of 2025, although annual growth in the number of agreements has eased from the stronger rates seen earlier in the year.

Three things to take from the figures

• Lending remains ahead of last year. Between January and July, lenders advanced around £1.4bn through 25,985 new agreements. That's 21% more by value and 13% more by number than in the same period of 2025.
• Monthly activity has levelled off. July saw 3,919 new agreements, up 1.4% on a year earlier. Growth is more modest than the increases recorded in some earlier months, although comparisons are affected by how strongly the market performed a year ago.
• The average loan remains around £52,000. The average amount borrowed was broadly unchanged from July 2025. Lending value has grown faster than the number of agreements over the year to date.

What about mortgage rates?

The Bank of England's Bank Rate averaged 3.75% in July. The average quoted rate on a two-year fixed first-charge mortgage at 75% LTV was 4.79%, compared with 4.21% a year earlier. By September, that quoted rate had risen to 5.13%, according to the Bank of England.

These figures provide useful context for the wider mortgage market, but they are not second-charge rates. Pricing on a second-charge loan depends on the borrower, the property and the lender's criteria.

What brokers and advisers should take from this

The figures point to a second-charge market that remains larger than it was a year ago, despite more modest recent growth.

For advisers, the important question is how a second charge compares with the alternatives available to each client. A further advance, remortgage or decision not to borrow may be more appropriate, depending on the circumstances.

The market figures provide context, not a recommendation for an individual borrower.

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The FLA's August 2026 figures are expected in late October.