The FLA said 3,245 new second charge mortgage agreements were completed during the month, although the value of new business increased by 9% to £175m.
Second charge mortgage new business volumes fell by 1% year-on-year in May, marking the first annual decline since April 2025, according to the latest figures from the Finance & Leasing Association (FLA).
The FLA said 3,245 new second charge mortgage agreements were completed during the month, although the value of new business increased by 9% to £175m.
Despite the monthly dip, the market remained in growth overall. In the first five months of 2026, new business volumes were up 17% compared with the same period last year.
Over the 12 months to May, the value of new second charge mortgage lending reached £2.36bn, up 28% year-on-year, while the number of new agreements increased by 19% to 44,402.
Fiona Hoyle, director of consumer finance and mortgages and inclusion at the FLA, said: “May saw the second charge mortgage market report its first contraction in new business volumes since April 2025.
“Despite this, new business volumes grew by 17% in the first five months of 2026.
“Demand is expected to remain resilient over the coming months as households seek flexible funding for home improvements, loan consolidation and other major expenses.
“Second charge mortgages continue to provide a valuable option for consumers looking to manage their finances effectively.”