The number of second charge loans taken out in September grew by 67 per cent year-on-year, according to data from the Finance & Leasing Association. 

Although this sector shows strong growth, the rate of increase has fallen when compared to the previous month, with annual increases standing at 103 per cent in August.

By value the second charge business was 78 per cent higher than a year ago at £102m. 

In the three months to September 2021 the value of these second charge loans was £298m, a 112 per cent increase on the previous year. Over this period there were 7,185 new agreements taken out — a 101 per cent annual increase.

FLA director of consumer and mortgage finance and inclusion Fiona Hoyle says: “The second charge mortgage market reported its sixth consecutive month of growth in September, with new business returning to levels seen pre-pandemic. 

“We expect new business volumes to continue to grow during the remainder of 2021 as demand remains solid.”