Consumers have taken out 11% more credit in the 12 months to August 2014, the Finance and Leasing Association has revealed.

Seconds mortgage totals increased by 34% year-on-year to £533m, while car finance taken out increased by 22%.

Consumers’ use of personal loans and credit cards increased by 5%, while their use of retail store and online credit increased by 9%.

Geraldine Kilkelly, head of research and chief economist at the FLA, said: “The growth of retail store and online credit illustrates the continued importance of consumer credit to the high street and the economy.”                                      

In August year-on-year 31% more seconds mortgages were taken out, totalling £46m.

Borrowing for car finance was up 11%, retail store and online credit use increased by 9% while use of personal loans and credit cards decreased by 1%.