The value of second mortgage loans rose 32% year-on-year to £223 million in October.
The latest figures from the Finance & Leasing Association show that second loans in October were up 22% year-on-year in volume at 4,238.
The total value of loans for the year to October was 23% higher than the corresponding period of 2024, at £2,045 billion.
The total number of loans for the year to October was 40,055, 15% higher than the same period a year earlier.
FLA director of consumer and mortgage finance and inclusion Fiona Hoyle said: “The second mortgage market has reported growth in the value of new business every month of 2025 so far.”
“The product is proving popular with consumers looking to effectively manage loan consolidation or finance home improvements.”
“The number of new businesses is expected to reach almost 41,000 by 2025, which would be the highest level since 2008.”
“The share of new contract volumes intended exclusively for the consolidation of existing loans remained stable at 59.5% in October compared to the previous month.”
“Another 22.5% was for home improvements and loan consolidation, and 11.9% was for home improvements only.”
“As always, customers concerned about meeting payments should speak to their lender as soon as possible to find a resolution.”