Second charge mortgage lending increased by 32% in the 12 months to October 2014 compared to the preceding year, figures from the Finance and Leasing Association have revealed.

The number of loans issued also increased by 11% in October compared to the same month last year.

Consumer finance business as a whole increased by 11% yearly to October compared to the year before, with car finance standing in second place (21%) followed by retail stores and online credit (9%) and credit cards and personal loans (5%).

Fiona Hoyle, head of consumer finance at the Finance and Leasing Association, said: “Consumer finance has played a key role in supporting economic growth, by helping households make essential purchases.

“Forecasts suggest this will continue in 2015, with gross consumer lending increasing by 3.3% compared with 2014.

“It has been a challenging year, as consumer finance providers got used to a new regulator and a new rulebook, but they have maintained the supply of responsibly-provided credit.”