Data from the Finance and Leasing Association (FLA) showed £259m worth of second charge loans taken out in the three months to June – up 36% on the same period last year.

There was also a substantial increase – up 28% to 5,402 – in the number of second charge loans completed in Q2 compared to Q2 2016.

FLA head of consumer and mortgage finance Fiona Hoyle (pictured) said: “In June, the second charge mortgage market reported its fourth consecutive month of growth, with new business up 33% by value and 22% by volume.

“The number of new second charge mortgages in the first half of 2017 was 10,401, 11% higher than in the same period in 2016.

“Second charge mortgages can be particularly useful when a customer wants to raise additional funds but does not want to change their existing first mortgage – especially where this involves additional costs. They are regularly used by customers to fund home improvements,” she added.

Sponsored

Introducing the Green Living Reward

Your clients can now get up to £2,000 cashback for making energy-efficient home

Sponsored by Halifax Intermediaries

Overall, consumer finance borrowing grew 7% in June compared to the same month last year, with 4% growth in the second quarter of 2017.

Credit card and personal loan new business together grew by 10%, while retail store and online credit new business increased by 3%.