The number of new second charge agreements in January totalled 2,907, a 24% upturn on the year before, industry figures showed.
Data from the Finance & Leasing Association (FLA) showed that the value of new business was also higher at the start of the year, with a 29% increase to £146m.
Business was also up in the three months to January, with the FLA recording a 19% rise in new agreements to 8,515 and a 31% increase in the value of business to £434m.
Over the 12 months to January, the value of new second charge business grew 26% to £1.76bn, and the number of new agreements was 19% higher at 36,267.
Compared to the previous month, the number of agreements in January was higher than December’s 2,505 and the £130m total value of business.
Fiona Hoyle, director of consumer and mortgage finance and inclusion at the FLA, said: “The second charge mortgage market made a positive start to 2025, with double-digit growth in new business by value and volume.
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“The distribution of new business by purpose of loan in January 2025 showed that the proportion of new agreements [that] were for the consolidation of existing loans at 58.5%; for home improvements and the consolidation of existing loans at 23%; and for home improvements only at 12.2%.
“As always, customers who are concerned about meeting payments should speak to their lender as soon as possible to find a solution.”
