Methodology
How the Secured Loan Index works
Where the figures come from, how changes are calculated, when the figures change, and who publishes the Index.
What the Index covers
The Secured Loan Index tracks lending across the UK second-charge mortgage market: loans secured on a home behind an existing first mortgage. It brings together published figures on lending volumes, the number of new agreements and wider mortgage interest rates.
The aim is simple: to make the latest market data easier to find, compare and understand.
Where the figures come from
The Index uses data published by the Finance & Leasing Association (FLA) and the Bank of England.
FLA figures show the value and number of new second-charge agreements. Bank of England data provides context on Bank Rate and quoted first-charge mortgage rates.
Every series is attributed to its original source. We do not alter the published figures, and provisional data is labelled accordingly. The series currently published are:
| Series | Source | Code | Frequency | How obtained |
|---|---|---|---|---|
| Second-charge new business | Finance & Leasing Association | — | Monthly | Imported from the monthly press release, under licence |
| Second-charge new agreements | Finance & Leasing Association | — | Monthly | Imported from the monthly press release, under licence |
| Bank Rate (monthly average) | Bank of England | IUMABEDR | Monthly | Retrieved daily from the Bank of England Database |
| 2-year fixed, 75% LTV (quoted) | Bank of England | IUMBV34 | Monthly | Retrieved daily from the Bank of England Database |
| 5-year fixed, 75% LTV (quoted) | Bank of England | IUMBV42 | Monthly | Retrieved daily from the Bank of England Database |
Source: As listed. Bank of England series codes refer to the Bank of England Database.
How changes are calculated
Lending volumes (value and number of agreements) are compared with the same month a year earlier, as a percentage change. This avoids reading seasonal patterns as trends.
Interest rates are compared with the previous month, with changes shown in basis points. One basis point is 0.01 percentage points.
- Headline figures are the latest published month for each series, shown as published.
- The average amount borrowed is the month’s lending value divided by its number of new agreements.
- The Index does not smooth or seasonally adjust the figures. Where data has not yet been published, the missing period is left blank rather than estimated.
- A change is only shown when both months being compared have been published.
When the figures change
Bank of England data is checked every morning and updated as new figures become available. Quoted household mortgage rates are published by the Bank on the 5th working day of the following month. FLA figures are added following the Association’s monthly release, usually several weeks after the month they cover.
Because the two sources publish on different schedules, the FLA lending data and the mortgage rate data can run to different months. The top of every page shows how far each runs.
Some figures are provisional and may be revised. When a source updates its figures, the Index reflects the revised data and keeps a record of the change. This means an earlier edition may not always show exactly the same numbers as when it was first published.
An important distinction on interest rates
The mortgage rates shown in the Index are Bank of England averages for first-charge mortgages. They provide context on the wider mortgage market; they are not rates available on second-charge loans.
Second-charge pricing depends on the borrower’s circumstances, the property and the lender’s criteria.
Charles Frank Finance’s own rates
Where shown, the “rates from” figure is the lowest rate currently available on Charles Frank Finance’s own lending panel, taken from its live rate feed. It is not part of the market figures, it is always shown separately, and it always appears with a representative example and a risk warning.
Who publishes the Index?
The Secured Loan Index is compiled and published by Charles Frank Finance Limited, a mortgage and specialist finance broker.
We recognise that we operate in the market covered by this publication. To keep the distinction clear, market figures are taken from third-party sources, attributed to their publishers and kept separate from our own commercial rates. Our commentary represents our interpretation of the data.
Charles Frank Finance Limited is authorised and regulated by the Financial Conduct Authority, firm reference number 624668. Registered in England and Wales, company number 07791769. Registered office: 89 Cardiff Road, Taffs Well, Cardiff, CF15 7PL. ICO registration Z2962200.
Corrections and use of the data
If you spot a possible error, email specialist@cffl.co.uk with the series and month concerned. We will check it against the original source and correct confirmed errors.
Where available, figures can be downloaded as a CSV file. If you quote the Index, please credit the Secured Loan Index, compiled by Charles Frank Finance, and cite the original source of the figures.
The Index is provided for information only and does not constitute financial advice or a personal recommendation.