New second charge mortgage lending was up 7% in the three months to February year-on-year, business figures from the Finance & Leasing Association showed.

The value of new business for second charge mortgage lending was £233m in the three months up to February, a rise of 5% from that of the previous year.

There were 22,270 new agreements in the 12 months leading up to February, an  increase of 12% year-on-year.

Fiona Hoyle, head of consumer and mortgage finance at the Finance & Leasing Association (FLA), said: “The second charge mortgage market reported growth in February, with new business up 4% by value and 9% by volume, compared with the same period in 2017.

“February saw an increase in the number of customers taking out a secured loan, which are often used to fund home improvements or deposits on a second property.”