1 in 3 homeowners raising capital now choose a second charge

New analysis of UK lending data suggests that around one in three homeowners raising additional capital against their property now use a second charge mortgage rather than remortgaging. 

 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. 

Second charge mortgages are primarily used for capital raising, meaning the full volume of loans represents homeowners borrowing additional funds against their property. By comparison, the wider remortgage market is significantly larger but only a portion of those loans involve borrowers releasing additional equity. 

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 400,000 remortgage transactions during the year. Industry data suggests that between 20% and 30% of remortgages involve borrowers raising additional capital rather than simply refinancing their existing mortgage balance. 

Using a midpoint estimate of 25%, this indicates that roughly 100,000 remortgages in 2025 included additional borrowing. When combined with 41,657 second charge mortgages, the total number of mortgages used for capital raising in 2025 is estimated to be around 141,000 loans.  

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

The data highlights the increasing role second charge lending plays in helping homeowners access equity. 

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, 

 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. 

The figures also underline the scale of activity within the second charge sector itself. The 41,657 loans completed in 2025 equate to almost 3,500 second charge mortgages per month, or more than 800 loans each week. The data demonstrates how second charge mortgages have become a significant part of the UK mortgage landscape, supporting tens of thousands of homeowners each year. 

What this means for advisers 

As the second charge market continues to grow, advisers may increasingly encounter clients where a second charge could be considered alongside a traditional remortgage. This is particularly relevant where borrowers are looking to raise capital but wish to retain an existing first-charge mortgage rate or product. 

Legal & General Mortgage Club members have access to second charge referral solutions through Referral Pro. Loans Warehouse works with a broad panel of leading second charge lenders, providing advisers with a route to explore specialist lending options for clients where appropriate, while helping ensure all available borrowing solutions are considered as part of the advice process.

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