The number of new second charge loans taken out in June was 1,960, up 195% on the same month last year, according to the latest figures from the Finance and Leasing Association (FLA).

The value of second charge business in June was £91m, equating to a 236% increase in value compared to May 2020.

For the three months to April, 5,853 second charge new agreements were arranged, worth £260m.

However, for the full year to June 2021 19,903 new second charge loans were completed, worth a total of £833m, down 24% and 21% respectively.

FLA director of consumer and mortgage finance and inclusion Fiona Hoyle says: “The second charge mortgage market continued its recovery in June as new business grew for a third consecutive month.  In H1 2021, new business volumes increased by 21% compared with the same period in 2020, and we expect further growth during the second half of this year.”

FLA figures for second charge borrowing in April showed a rise of 176% on the same month last year.