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Second charge mortgage awareness on the rise
Recent research from Pepper Money shows a significant rise in both awareness and adoption of second charge mortgages among UK homeowners.
The study found that over half (51%) of UK adults now recognise second charges as a way to access extra funding for various needs. This figure increases to 54% among homeowners actively looking for ways to raise capital without disrupting their current mortgage.
Just over a year ago, awareness among homeowners stood at only 33%, highlighting a dramatic increase in both visibility and understanding of this lending option.
Pepper Money attributes this shift to wider economic pressures, including rising living costs, persistent inflation, and stagnating wages. These factors are pushing more homeowners to consider second charge mortgages as an alternative borrowing method.
A booming market backed by strong lending growth
The growing interest in second charge lending is also being reflected in market performance. According to analysis of official figures, the total value of second charge mortgage lending has risen by more than 40% in just two years.
Loan volumes have also seen a major uplift, with the number increasing by 26% over the same period, from 7,446 in Q1 2023 to 9,406 in Q1 2025. This momentum is expected to continue throughout the rest of 2025, signalling strong and sustained growth in this area of the mortgage market.
A key opportunity for brokers
As second charge lending becomes more popular, the message for brokers is clear: this is a growing opportunity that should not be overlooked. With more clients actively exploring this solution, it’s crucial for brokers to be equipped with the right referral partnerships.
By partnering with a specialist in this space, brokers can ensure they’re offering clients solutions that meet their needs, while also tapping into one of the fastest-growing areas of the mortgage industry.
If you need help with a complex case, give us a call on 0800 032 9595 for support.
