The Intermediary – May 2025 - Flipbook - Page 12
S E C O N D C H A RG E
In focus
SECOND CHARGE
In Numbers
2020
◆
The second charge market expanded by nearly a third
(31%) in 2020, showing its use in facing the immediate
impact of the pandemic. (Source: Pepper Money
analysis of Bank of England and FLA data)
2023
◆
New second charge lending fell 10% year-on-year to
£106m; the number of new agreements also dropped
10% to 2,406. For the three months to February 2023,
agreements were down 2% year-on-year to 6,807.
(Source: FLA)
◆
Searches for second charge mortgages on broker
platforms rose 14% year-on-year compared to 2022,
indicating rising consumer interest.
(Source: Knowledge Bank)
2024
Shaping the future
◆
January saw market growth of 29% compared to
January 2023. Lending grew 17% year-on-year in H1,
making second charge the fastest-growing segment of
the secured loans market. (Source: Pepper Money)
◆
Across the year, growth in the seconds market
surpassed the previous year’s performance by 25%; the
value of new second charge lending hit £130m, up 35%
year-on-year. (Source: Bank of England, FLA)
◆
£3.2bn was accessed via second charge mortgages from
Q1 2022 to Q2 2024, 27% higher than pre-pandemic
levels. (Source: Pepper Money)
2025
◆
Around 40,000 households are expected to use
homeowner loans in 2025. (Source: Pepper Money)
◆
In March 2025, new business volumes rose 18% yearon-year; in the 12 months to March, there were were
37,053 new agreements (£1.82bn) – a 19% increase in
volume and 27% increase in value compared to the 12
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The Intermediary | May 2025
months to March 2024. (Source: FLA)
