According to figures from the Finance & Leasing Association (FLA), new contract volumes for second mortgage loans increased by 35% in volume and 41% in value in December 2025.
In December, £182m of new contracts were agreed, up 41%, and 3,379 new deals were agreed in the month, up 35%.
In the three months to December there was £608m of new second line activity, comprising 11,551 loans.
£2.1bn of new second-line contracts were written in the year to December, up 27%, with 41,760 loans, up 17%.
FLA director of consumer and mortgage finance and inclusion Fiona Hoyle said: “The second mortgage market ended 2025 strongly, with the volume of new business rising by 35% in December compared to the same month in 2024. In 2025 as a whole, the number of new business, both in value and volume, reached the highest level since 2008.”
“The analysis of the purpose of the loans suggests a stable picture, with the share of new contract volumes intended exclusively for the consolidation of existing loans last year reaching 58.3%.”
“Another 23.0% was for home improvements and loan consolidation, and 12.0% was for home improvements only.”