Finance & Leasing Association reports growth in lending across consumer and business markets
New business in the second charge mortgage sector increased by 16% in June, according to the latest data from the Finance & Leasing Association (FLA).
The trade body said the market reached its highest monthly level for both value and volume so far this year.
Figures for the first half of 2025 show that new second charge mortgage business volumes were 12% higher than in the same period last year.
In June, 57.6% of new agreements were for consolidating existing loans, 24.2% for home improvements combined with loan consolidation, and 12.6% for home improvements alone.
“June saw the second charge mortgage market report its highest level of new business by both value and volume in 2025 so far. In the first half of 2025, new business volumes were 12% higher than in the same period in 2024,” said Fiona Hoyle (pictured), director of consumer and mortgage finance and inclusion at the Finance & Leasing Association.
“As always, customers who are concerned about meeting payments should speak to their lender as soon as possible to find a solution.”
See the latest statistics from the FLA showing the market performance for the asset, consumer, and motor finance sectors: https://t.co/TuDe3uUW7L pic.twitter.com/rIwkSUqFwJ
— Finance & Leasing Association (@_F_L_A) August 6, 2025
Meanwhile, the FLA also reported that its members provided £80.3 billion in new lending across asset finance, consumer finance, and motor finance in the first half of 2025, a 4% increase compared to the same period last year.
Of this total, £20.2 billion went to businesses for investment in machinery, equipment, and vehicles, including £12.0 billion for small and medium-sized enterprises. Lending to households totalled £60.1 billion, with £21 billion used for new and used car purchases. Non-bank lenders accounted for £31.8 billion of the overall lending.
“During my time as director general of the FLA, our markets have faced many challenges; firstly, the COVID pandemic, then subsequent supply shortages, a cost-of-living crisis, tariff uncertainty, and indeed regulatory uncertainty,” said Stephen Haddrill, director general at the Finance & Leasing Association.
“However, our members and their markets are resilient – annual new business levels increased from around £140 billion a year in 2019 to almost £160 billion in our latest statistics. This is heart-of-the-economy funding – whether it’s supporting small or micro business investment, high street purchases or helping to buy the family car.
“It matters because it makes a difference to people in their day-to-day lives. Motor finance lenders are currently weathering a tough period, but they will prevail because they have good products and loyal customers.”
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