The number of new second charge mortgages arranged in August (3,179) was up by 37% compared to a year earlier, according to the Finance & Leasing Association (FLA).

£153m was lent over the month, up 61% over the same time period.

The trade association said that second charge mortgage lending of £1,465m had been made in the 12 months to August 2022.

Fiona Hoyle, director of consumer and mortgage finance and inclusion at the Finance & Leasing Association (FLA), said: “The second charge mortgage market reported another strong performance in August, with annual new business volumes 5% higher than pre-pandemic.

“The distribution by purpose remained in line with recent months: 54% of new agreements were for the consolidation of existing loans, 15% for home improvements, and a further 25% for both loan consolidation and home improvements.”

“As always, customers who are concerned about meeting payments should speak to their lender as soon as possible to find a solution.”