New business in the second charge mortgage market increased by 27% in July to pass the £50m mark for the first time since 2008, figures from the Finance & Leasing Association reveal.

There was also a 7% growth in consumer finance new business, bringing FLA members’ share of the UK consumer credit market to 33.8% in the twelve months to July 2014.

Geraldine Kilkelly, FLA’s head of research and chief economist, said: “The July figures show the continuing importance of consumer credit, and specifically point-of-sale credit, in helping consumers make essential household purchases.

“Our latest research suggests that new consumer credit in the UK will grow by about 8% this year.”

FLA members in the consumer finance sector include banks, credit card providers, store card providers, second-charge mortgage lenders, motor finance providers, personal loan and instalment credit providers.