Equity release demand rises amid housing slowdown

Specialist mortgage lender Pepper Money recorded its strongest-ever month in second charge mortgages in March, with £57m funded.

It follows new data from the Finance & Leasing Association (FLA), which showed the UK’s second charge mortgage market lent a total of £228m in March 2026, the highest monthly since February 2008 and up by more than a third (36%) year-on-year. The first quarter overall saw £625m of new second charge business, up 33% on the same period last year. 

Ryan McGrath, sales director of second charge mortgages at Pepper Money, said: “This marks the highest monthly lending we’ve achieved to date, reflecting our commitment to a broad and accessible product range, as well as clear, transparent communication that supports both brokers and customers.”

A trend of improve rather than move

And he believes the market is set to get even more popular as homeowners opt to improve rather than move. “Against a backdrop of continued market growth, cost-of-living pressures show little sign of easing, while ongoing geopolitical uncertainty is likely to drive further increases in everyday expenses such as energy and fuel.

“At the same time, a housing market characterised by slower transactions and less attractive interest rates is discouraging many homeowners from moving, increasing the trend to improve rather than move,” he said.

“Second charge mortgages are becoming increasingly mainstream as a flexible and reliable way for homeowners to access equity without disturbing their existing mortgage, offering a practical route to secure funding with greater certainty.”