Around one in three homeowners raising additional capital against their property are now utilizing a second charge mortgage rather than remortgaging, according to new analysis of UK lfinishing data.
Figures from the Finance & Leasing Association display that 41,657 second charge mortgages were completed in 2025, representing the sector’s strongest annual performance in almost two decades.
These loans are primarily applyd for capital raising, meaning the full volume reflects homeowners borrowing additional funds secured against their property.
The wider remortgage market remains significantly larger. UK Finance estimates that external remortgage lfinishing reached around £76bn in 2025, which based on typical loan sizes of £180,000–£200,000 equates to roughly 400,000 remortgage transactions during the year.
However, indusattempt data suggests only 20%–30% of those involve borrowers releasing additional equity rather than simply refinancing their existing mortgage balance.
Using a midpoint estimate of 25%, around 100,000 remortgages in 2025 included additional borrowing.
When combined with the 41,657 second charge mortgages completed during the year, this suggests approximately 141,000 mortgages were applyd for capital raising, with second charge loans accounting for about 29% of that activity.
Matt Tristram, co-founder of Loans Warehoapply, declared: “Second charge mortgages are often discussed as a specialist lfinishing product, but when you see 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 applyd to raise additional borrowing.”
The figures also highlight the scale of activity within the second charge sector itself. The 41,657 loans completed in 2025 equate to almost 3,500 mortgages per month, or more than 800 each week.
Loans Warehoapply declared the data demonstrates how second charge lfinishing has become a significant part of the UK mortgage landscape, supporting tens of thousands of homeowners access equity from their properties each year.
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