As a result, the number of new agreements in July was 2,433, and the value of this new business was £101m.

In the three months to July 2021, the number of new agreements rose by 198% to 6,396 and the value of new business increased by 217% to £279m.

Annually, the total number of new agreements fell by 8% to 21,359 and the value of new business dropped by 11% to £894m.

Fiona Hoyle, director of consumer and mortgage finance and inclusion at the Finance & Leasing Association (FLA), said: “The strong recovery reported by the second charge mortgage market in recent months continued in July as new business reached its highest level since February 2020.

“We expect to see further growth this year as the market returns to pre-pandemic levels of new business.”