Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

Second Charge Mortgage New Business Volumes Drop 1% in May 2026

New business volumes in the second charge mortgage market fell by 1% in May 2026, according to the Finance & Leasing Association (FLA). This marks the first contraction in new business volumes since April 2025.

In May 2026, the value of new second charge mortgage business reached £175 million, which is a 9% increase compared to the same period last year. However, the number of new agreements in May stood at 3,245, representing a 1% decrease year-on-year.

Over the three months to May 2026, the value of new business totalled £594 million, up 25% on the previous year. The number of new agreements during this period rose by 13% to 10,878.

Looking at the 12 months to May 2026, the value of new business reached £2.355 billion, an increase of 28% compared with the previous year. The number of new agreements over the same period rose by 19% to 44,402.

These figures may be of interest to UK letting agents and inventory clerks monitoring trends in property finance, as changes in second charge mortgage activity can influence landlord and tenant decisions regarding property improvements and financial planning.