The second charge market grew by 25 per cent in value in August, compared with the same month last year, the latest figures from the Finance and Leasing Association show.
The volume of new business also increased in August, up 11 per cent on 12 months previous.
There was £91m worth of second charge mortgage lending completed in August and £274m in the three months leading up to the end of the month. For the year to August, £974m worth of second charge mortgage lending was completed.
FLA head of consumer and mortgage finance Fiona Hoyle says: “The second charge mortgage market reported another strong month in August, with new business continuing to grow from a low base.
“A second charge mortgage provides a useful alternative where homeowners want to raise additional funds but do not want to change their existing first charge mortgage.”