According to the latest Finance & Leasing Association (FLA) figures the value of new second charge mortgage lending business more than tripled from £21m in May last year, to around £84m in May this year.
The value of second charge mortgage lending is also up from £81m in April this year.
However, lending volumes have not fully returned to pre-pandemic levels with the value of new business for the 12 months to May this year pegged at £784m, which is down by a third compared to the previous year.
According to the FLA there were 1,910 new agreements during May, up from 486 in May last year almost three months into the first national lockdown.
New agreements also increased slightly compared to the previous month, increasing from 1,890.
The FLA reported that new agreements in the three months to May came to 5,848, up from 3,221 year-on-year.
However, the number of new agreements in the 12 months to May this year is down by more than a quarter, with 18,044 new agreements reported.
FLA’s director of consumer and mortgage finance and inclusion Fiona Hoyle said: “The improvement in consumer confidence means the market expects to see the recovery in new business continue during the second half of 2021.”