New mortgage business volumes fell by 1% in volume and rose by 9% in value in May 2026, according to figures from the Finance and Leasing Association.
£175 million worth of new business was agreed in May, with 3,245 new agreements in the month.
The three months to May saw £594m of new second charge business, comprising 10,878 loans.
There was £2.35bn of new second charge business written in the year to May, up 13%, with 44,402 loans, up 19%.
“May saw the mortgage market for the second time record its first contraction in new business volumes since April 2025,” says Fiona Hoyle, director of consumer finance, mortgages and inclusion at the Finance and Leasing Association. “Despite this, new business volumes grew by 17% in the first five months of 2026.”
“Demand is expected to remain resilient over the coming months as households seek flexible financing for home improvements, loan consolidation and other major expenses. Second-payment mortgages continue to provide a valuable option for consumers looking to manage their finances effectively.”
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