The value of second charge lending in May was 22% higher than the same month last year reaching £142m, figures from the Finance & Leasing Association reveal.

The figure equates to the highest month for new business by value since October 2022.

The total number of new second charge loans was also 16% higher than in May 2023, at 2,957, it found.

There was a total of 32,183 second charge deals completed in the 12 months to May, worth £1,490m.

However, looking at the 12 months to May 2024 compared to the previous 12 months, lending was down by 1% by number of agreements and value of loans.

Finance and Leasing Association director of consumer and mortgage finance and inclusion Fiona Hoyle says: “May saw the second charge mortgage market report its highest level of new business by value since October 2022. The market has reported a sustained period of growth leading to new business growth of 20% by value and 14% by volume in the first five months of 2024.

“The distribution of new business by purpose of loan in May 2024 showed that the proportion of new agreements which were for the consolidation of existing loans was 59.8%; for home improvements and the consolidation of existing loans was 23.7%; and for home improvements only was 11.5%.

“As always, customers who are concerned about meeting payments should speak to their lender as soon as possible to find a solution.”