Second charge business levels increased by 6% by both value and volume in August, according to the latest figures from the Finance & Leasing Association.

The year-on-year increase came as consumer finance new business increased by 16% during the month.

Geraldine Kilkelly, head of research and chief economist at the FLA, said:“After a quiet July, all of the main consumer finance products reported new business growth in August, reflecting continued consumer confidence in the general economic outlook.

“Second charge mortgage new business volumes grew for the first time since February, following the market’s transfer to the FCA’s mortgage regime in March.”