The number of second charge loans taken out in August was up by 103% year on year to 2,214, according to the latest statistics from the Finance and Leasing Association.

By value, second charge business was 118% higher compared to a year ago at £95m.

However, month-on-month, second charge lending was down 6% by value and 5% by volume from £101m and 2,433 loans in July.

Looking at the year to the end of August, the total value of loans was 1% higher than the previous 12 months at £956m.

The number of loans over the same period was 5% higher than the previous year at 22,880.

FLA director of consumer and mortgage finance and inclusion Fiona Hoyle says: “The second charge mortgage market continued its recovery from the pandemic in August. 

“The market has reported more normal levels of new business in recent months which we expect to continue in the final quarter of 2021.”