Growth in loan volumes prompts call for advisers to treat second charge as part of standard advice
Second charge lending should now be viewed as a mainstream route rather than a niche specialist product, Matt Tristram (pictured top), director at Loans Warehouse, has pointed out as annual lending passes £2 billion and monthly completions near 4,000.
According to figures highlighted by Loans Warehouse, the second charge market recorded £2.045 billion of completions in the 12 months to November 2025, the first time annual lending has surpassed £2 billion since 2005. Recent data from the Finance & Leasing Association (FLA) shows new second charge business in November 2025 rose 27% by case numbers and 28% by value compared with the same month a year earlier.
“Second charge lending has officially passed £2 billion annually, with completion volumes now reaching a scale that puts it firmly alongside other major specialist finance markets and potentially ahead when measured by the number of completed deals,” Tristram said. “However, while lenders and investors often measure market importance by total lending value, consumers and brokers experience lending far more simply: a deal is a deal.”
FLA statistics show that 3,934 second charge loans completed in November 2025 alone, with 11,958 new second charge agreements written over the three months to November. Tristram argued that this run-rate indicates second charge is operating at meaningful scale for brokers active in specialist distribution.
Tristram drew a comparison with the bridging sector, where the latest BDLA reporting points to £2.8 billion of completions in the first quarter of 2025 and widely cited average loan sizes of around £540,000 during that period.
“Based on those published figures, this implies an estimated 5,000 bridging completions per quarter (calculated as total completions value divided by average loan size), meaning second charge lending is now operating at a comparable — and potentially higher — level in unit completion terms, even where the two sectors serve different borrower needs and loan sizes,” Tristram said.
“Crossing £2 billion is a landmark moment for second charge lending — but the bigger story is what sits behind it: completion volumes that now prove second charge is a mainstream lending route. When the market is completing nearly 4,000 loans in a single month, that’s not a niche product anymore - that’s scale.
“For years, the specialist finance conversation has focused heavily on the ‘£ value’ of markets like bridging — but consumers don’t think in those terms. From their point of view, a completed deal is a completed deal. And when you compare the likely number of bridging completions against second charge loan counts, it’s clear second charge is now firmly in that same bracket — and in pure unit terms, it may even be bigger.”
Tristram added that the growth in activity supports the case for advisers to ensure they can access suitable second charge options where appropriate to client needs. “We have long believed second charge should be viewed as a core part of modern advice,” he said.
“Whether the goal is home improvements, debt consolidation, or raising capital while preserving a competitive first-charge rate, this market is now delivering outcomes at a wider level.”
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