Second charge mortgage business volumes grew in January, according to figures published by the Finance & Leasing Association.

It said that £76m was lent in second charge mortgages in the first month of this year, which was 8% more than in January 2017.

In terms of sales volumes, there were 1,645 second charge loans lent to borrowers, 13% up on a year earlier.

What are second charge mortgages?

The mortgages are taken out by borrowers to run in addition to their existing homeloan and can be a useful way to raise funds without disturbing your current deal, or to consolidate debt.

They usually have a shorter term than a mortgage and are similar to personal loans. However, unlike loans, second charge mortgages are secured against your property.

Fiona Hoyle, head of consumer and mortgage finance at the Finance & Leasing Association (FLA), said: “The second charge mortgage market reported growth in January. The sector is continuing its work in ensuring that the new regulatory regime is fully implemented.”