The number of new second charge mortgages taken out in June was up for the fourth month running, said the Finance and Leasing Association.

The value of lending also saw a significant increase, with £259m-worth of second charge loans taken out in the three months to June.

Fiona Hoyle, head of consumer and mortgage finance at the FLA, 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.”