The value of secured lending in June was up by 21% year-on-year as £46m was lent during the month, figures from the Finance and leasing Association have shown.
Loan volume also increased during the month and was up 9% compared with June 2013 which represented the first growth in new contracts since March.
In total there was a 14% increase in all consumer finance new business compared with June last year and a 13% increase in the first half of 2014.
Geraldine Kilkelly, head of statistics and chief economist at the FLA, said: “Growth strengthened across the consumer finance market in June following a relatively quiet couple of months.
“Consumer confidence was no doubt boosted by the good weather and the start of the summer sales.”