The second charge mortgage market reported its highest monthly new business volumes in July since 2008.

The Finance and Leasing Association (FLA) showed new business volumes rose by 17% year-on-year to reach £115m.

Meanwhile there were 2,656 new agreements, a year-on-year increase of 23%.

Fiona Hoyle, head of consumer and mortgage finance at the FLA said: “The popularity of second charge finance is continuing to grow, with consumers increasingly using it to fund property extensions and other home improvements.”