The Intermediary – March 2026 - Flipbook - Page 74
S E C O N D C H A RG E
Opinion
New entrants
are expanding
the market
A market lengthening its reach as fresh demand gathers pace
T
he latest Finance &
Leasing Association
(FLA) figures show
that 41,760 new second
charges were wrien
in 2025, up 17% on the
year before, with new business value
reaching £2.142bn, up 24%. December
alone was up 35% by volume year-onyear, and the market finished 2025 at
its highest annual level by both value
and volume since 2008.
Long-term activity
Those numbers maer because they
show a market growing with real
breadth, not just a short-term spike.
The FLA’s analysis of loan purpose
suggests a stable and increasingly
well-understood product: 58.3% of
2025 business was for the sole purpose
of consolidating existing loans, 23.0%
combined consolidation with home
improvements, and 12.0% was for
home improvements alone.
In other words, this is not a niche
product with one narrow use case. It
is being used by borrowers to manage
debt, improve homes and raise capital
without disturbing an existing first
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The Intermediary | March 2026
charge mortgage that may still be
aractively priced.
At Pure Panel Management, we
have seen that growth first-hand
through increased second charge
surveying demand from our lender
and broker partners during 2025.
What is striking is that this is not
just about incumbent lenders writing
more cases. New entrants have arrived
with clear propositions, modern
processes and the ambition to scale
quickly. Interbridge, for example,
entered the market in May 2024,
reported more than £60m of lending
within its first three months, and
later said it had delivered over £250m
in second charge loans during its
first year.
In addition, Pepper Money last year
reported in May 2025 that awareness
of secured lending had risen to 51% of
UK adults and 54% of homeowners
considering borrowing, up from 33%
among mortgaged homeowners a year
earlier. That is the opportunity. The
challenge is operational.
Growth is welcome, but growth
puts pressure on every part of
the process. A lender can have
HELEN SCORER
is operations director
at Pure Panel Management
a competitive product, strong
distribution and a slick front end, but
if the case slows down on valuation,
the customer still experiences delay.
As volumes rise and newer brands
establish themselves, lenders and
brokers need surveying partners who
can cope with demand, cover the
right areas, and keep cases moving
without compromising quality. In a
market where service is now a real
differentiator, resilience maers just
as much as price.
Future growth
This is especially important in second
charges, where borrowers are oen
making time-sensitive decisions
around debt consolidation, home
improvements or raising funds while
preserving a low first charge rate.
They do not just need a lender
willing to say yes. They need a process
that stays joined up from application
through to completion. That means
dependable capacity, sensible
coverage, clear communication and
valuation expertise that understands
the nuances of the sector.
The second charge market is
outgrowing the idea that it is simply a
specialist corner of lending. The FLA
figures show momentum.
New lender entrants are adding
competition, fresh technology and
more visibility.
The next phase of growth will
not be won on headline rates alone.
It will be won by the lenders and
brokers who choose partners with the
experience, capacity and consistency
to keep service steady as the
market expands. ●
