The value of new second charge business in the 12 months leading up to October rose by 13% from that the previous year, Finance & Leasing Association (FLA) stats show.

This October the value of new business was £85m, a rise of 20% from that of the previous year.

In the 12 months leading up to October, the number of new deals agreed rose by 8% to 21,247 and the number of new deals increased by 19% from October 2016 to October 2017 to reach 1,880.

Fiona Hoyle, head of consumer and mortgage finance at the Finance & Leasing Association, said: “A second mortgage continues to be a useful option for customers seeking to raise additional funds without wanting to change their existing mortgage, and is regularly used to fund home improvements.”

Harry Landy, managing director at Enterprise Finance said that the rise was great for the sector and is cautiously optimistic it will continue.

He said: “Consumer confidence has recovered from last month’s blip, and the second charge market is continuing its upward trajectory that saw six months of consecutive month-on-month growth from March to August.

“Whether it is to fund renovations, help a family member with a deposit, or consolidate household debts, we’ve seen more borrowers taking out second charge mortgages – many at a higher value – and this has led to a strong year for the sector.

“We are cautiously optimistic that this increase will continue into next year, but it is important that brokers are aware of the range of specialist financing options around, and can therefore provide tailored advice to borrowers.”