Second charge mortgage lending volumes rose by 25% year-on-year to May, data from the Finance and Leasing Association shows.
The FLA recorded 651 new second charge mortgage loans in the year to May, while there were 186 seconds loans in the three months to May alone.
Geraldine Kilkelly, head of research and chief economist at the FLA, said: “May was a quieter month for FLA consumer finance providers, but overall the market continued to grow.
“Recent research by Oxford Economics showed just how important FLA consumer finance providers are to the UK economy. In 2014, they funded 7% of all UK consumer spending and supported 247,000 UK jobs.”
Second charge lending outstripped other forms of consumer credit on a yearly basis, as car finance volumes rose by 14%, retail store and online credit by 5% and credit card and personal loans by 1%.