Loans Warehouse has said growth in the second charge mortgage market is shifting away from demand driven by interest rate pressures towards more structural factors.
The broker said earlier growth had been fuelled by borrowers trapped on long-term fixed rates during the rate shock of 2023 and early 2024, but this trend is now beginning to ease as the Bank of England base rate stabilises.
Loans Warehouse said debt consolidation is now the most consistent driver of activity, with cost-of-living pressures pushing borrowers to reduce monthly outgoings without affecting existing first charge mortgage deals.
The firm added that borrower behaviour is also contributing, with customers increasingly opting…