New second charge mortgage business increased by 43% by value and 23% by volume in May, data released by the Finance & Leasing Association has found.

The FLA revealed that second charge mortgages helped new consumer finance to reach £5bn May which represented an increase of 5% on the same period the last year.

The FLA also found that total consumer finance hit £15.4bn in the quarter up to May.

Fiona Hoyle, head of consumer credit at the FLA, said: “These figures show continued demand for the affordable, responsibly-provided credit which is so important for economic recovery.

“As the government finalises the statutory framework for the transfer of consumer credit regulation to the Financial Conduct Authority in April 2014, it is vital that the supply of credit to consumers is maintained.

“The start of the new regime is only nine months away, and the new regulator has a lot to do in a very short time to ensure a sensible transition process.”