Average second-charge loan falls to £52,300, its lowest this year
It is still 0.5% higher than a year earlier. Agreements reached their highest since March while the value lent held flat.
The figure
Dividing the FLA's July 2026 new business of £205.0m by its 3,919 new agreements gives an average second-charge loan of about £52,300, the lowest monthly figure of 2026 so far.1,2
In July 2025 the same calculation gave about £52,000, so the average is 0.5% higher on the year. Between June and July 2026 the value lent stayed at £205m while agreements rose by 91.2
Through the year
The average peaked at about £55,200 in March 2026, when lenders advanced £228m across 4,129 agreements. It has fallen every month since: about £54,500 in April, £53,900 in May, £53,600 in June and £52,300 in July.2
Across January to July the average was about £53,900, with £1.4bn advanced over 25,985 agreements. In the same months of 2025 it was about £50,300.2
Over the 12 months to July the FLA counted £2,384m of new business and 44,781 agreements, an average of about £53,200.1
How it's calculated
The FLA publishes the value and number of new agreements; the average is our division of one by the other. It is a mean, so a few large loans can move it, and it says nothing about the typical case.2
The Secured Loan Index treats the latest month as provisional, because the FLA can revise it when it publishes the next release.2
What's next
We expect the FLA's August figures in late October, based on the timing of past releases. July's came on 23 September 2026.1
Sources
- 1Finance & Leasing Association, “Second charge mortgage new business volumes grew by 1% in July 2026 (23 September 2026)”July 2026 value and number of new agreements, the three-month and 12-month totals and changes, and Fiona Hoyle's comments.
- 2Secured Loan Index, “The Secured Loan Index: methodology”The monthly FLA series behind derived figures (average loan, year to date), and the Index's practice of treating the latest month as provisional.
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