New second charge business in October rose 20 per cent by value and 19 per cent by volume year-on-year.
There were 1,880 new second charge loans in October, according to new figures from the Finance & Leasing Association.
The FLA figures show that the three months to October saw second charge new business rise 15 per cent by value and 10 per cent by volume.
Second charge has had a strong year, though new business volumes did fall 2 per cent in September after six months of growth.
Enterprise Finance managing director Harry Landy says: “Consumer confidence has recovered from last month’s blip, and the second charge market is continuing its upward trajectory that saw six months of consecutive month-on-month growth from March to August.
“Whether it is to fund renovations, help a family member with a deposit, or consolidate household debts, we’ve seen more borrowers taking out second charge mortgages – many at a higher value – and this has led to a strong year for the sector.”
FLA head of consumer and mortgage finance Fiona Hoyle says: “A second mortgage continues to be a useful option for customers seeking to raise additional funds without wanting to change their existing mortgage, and are regularly used to fund home improvements.”