Second-charge lending surges to 20-year peak amid increased demand for capital raising

Figures from the Finance & Leasing Association (FLA) show that 41,657 second-charge mortgages were completed in 2025, marking the strongest annual performance for the sector in almost two decades.

The 41,657 loans completed in 2025 equate to almost 3,500 second-charge mortgages per month, or more than 800 loans each week.

Forecasts from UK Finance indicate that the UK external remortgage market reached approximately £76bn of lending in 2025.

Based on typical UK mortgage loan sizes of around £180,000–£200,000, this level of lending equates to an estimated around 400,000 remortgage transactions during the year.

Industry data suggests that 20–30% of remortgages involve borrowers raising additional capital rather than simply refinancing their existing mortgage balance.

When the 41,657 second-charge mortgages are taken into account, the total number of mortgages used for capital raising in 2025 is estimated to be around 141,000.

This means second-charge mortgages accounted for approximately 29% of all capital-raising mortgage transactions during the year.

Matt Tristram, co-founder of Loans Warehouse, commented: “Second-charge mortgages are often discussed as a specialist lending product, but when you look at the numbers, they are now supporting a significant share of homeowners raising capital from their property.”

Loans Warehouse said the data demonstrates how second-charge mortgages have become a significant part of the UK mortgage landscape.

“With more than 41,000 second-charge loans completed in 2025, the sector now represents roughly one in three mortgages used to raise additional borrowing,” explained Matt.