Quick answer
Second charge mortgage lending kept growing in July 2026, but more slowly. Figures from the Finance & Leasing Association (FLA), published on 23 September, show £205m of new second charge lending in July, up 2% on July 2025, across 3,919 new agreements, up 1%. Over the 12 months to July, lending reached £2.38bn, up 25%. The FLA expects higher market interest rates to "temper demand", but says second charges remain an attractive option for homeowners who want to raise money without giving up a low-rate first mortgage. For property investors, the same logic applies to a second charge bridge.
What the July figures show
The FLA's release for July 2026 sets out new second charge mortgage lending by its members:
- July 2026: £205m of new business, up 2% on a year earlier, from 3,919 new agreements, up 1%.
- Three months to July: £585m, up 9%, from 10,992 agreements, up 3%.
- Twelve months to July: £2,384m, up 25%, from 44,781 agreements, up 17%.
The month before was stronger. In June 2026, lending was also £205m but up 16% on a year earlier, with agreements up 9%, and the FLA said loan consolidation made up at least 60% of new business.
Fiona Hoyle, the FLA's director of consumer finance and mortgages, said the market "continued to grow in July, although at a more modest pace than earlier in the year", and that the prospect of rates staying higher for longer may continue to temper demand.
Why homeowners keep choosing a second charge
A second charge sits behind the existing mortgage. The first mortgage stays exactly as it is, and a separate lender takes a second legal charge over the same property. That matters when the first mortgage is on a low fixed rate that would be lost, or come with an early repayment charge, if it were refinanced to release more money.
Bank Rate is 3.75%, as covered in our report on the September rate decision. A borrower with a fixed rate they want to keep can borrow against their equity without giving it up, which is the point the FLA makes about homeowners retaining a low-rate first mortgage. Most of the borrowing is to consolidate other debts: in June, the FLA said loan consolidation made up at least 60% of new business.
How this applies to second charge bridging
The FLA figures cover longer-term second charge mortgages, but the same idea works over a shorter term. A second charge bridging loan raises money against the equity in a property you already own, for a few months to two years, without touching the first mortgage. Investors use it to:
- Fund a deposit or the works on another purchase, such as a lot bought through auction finance.
- Raise money quickly against a buy-to-let or commercial property with a good first mortgage in place.
- Add security alongside a first charge on another property. Our guide to using more than one property as security explains how lenders treat this.
Many first lenders require their consent before a second charge is registered, and the amount available depends on the combined borrowing against the value. Our guide to second charge bridging covers how lenders work out the loan, and the Q2 bridging market report shows second charge bridging was one of the areas that grew this year.
Regulated or not: it depends on the property
If the property is your home, or the home of a close family member, a second charge loan secured on it is a regulated mortgage contract. That brings FCA rules on advice, affordability and fees, and only lenders with regulated products can offer it. Our regulated bridging page and the guide to regulated and non-regulated bridging explain where the line falls.
Standards in that part of the market are under scrutiny. In March 2026 the FCA told second charge lenders and brokers to raise standards after a review, as reported by The Intermediary. It found some affordability checks left out key living costs, some customers were steered towards debt consolidation without it being clear it was right for them, and fees were not always clear. Before you borrow, check the total cost, including fees added to the loan.
Before you apply
- Know your equity. Lenders look at the first mortgage balance plus the new loan against the value. Our guide to how much you can borrow shows the maths.
- Compare the whole cost. Interest, arrangement and exit fees all count. See bridging loan fees explained.
- Plan the repayment. A bridge needs a clear exit, such as a sale or a refinance. Read bridging exit strategies.
We search the market, with access to 300+ lenders, and approach those whose criteria fit. Instant Quotes shows which second charge lenders on our panel fit your answers.
Common questions
How much second charge mortgage lending was there in July 2026?
The FLA reported £205m of new second charge mortgage lending in July 2026, up 2% on July 2025, across 3,919 new agreements.
What is a second charge bridging loan?
A short-term loan secured behind an existing mortgage on a property you own. The first mortgage stays in place, and the bridge is repaid from a sale or refinance.
Do I need my first lender's permission for a second charge?
Often, yes. Many first charge lenders require their consent before a second charge is registered, and some refuse it, particularly on buy-to-let and commercial mortgages.
Is a second charge on my home regulated?
Yes. A second charge secured on a home you or a close family member live in is a regulated mortgage contract, with FCA protections.
This article reports news and published figures as at 12 October 2026. It is for general information only and is not legal, tax or financial advice. Bridge & Build Finance is a commercial finance brokerage service, not a lender. Finance is subject to status, lender criteria, valuation, underwriting and approval.
