The value of new second charge business secured in September increased by 42% compared to the same period last year, the Finance & Leasing Association (FLA) calculates.

In total, £145m of lending was carried out across 3,138 new agreements – itself a 29% rise compared to the year before.

This means that in the three months to September, the value of new business came to £444m over 9,444 new agreements, a 49% and 31% rise, respectively.

And in the year to September, the FLA says that £1.5bn has been lent out on a second charge basis over 33,141 new agreements – increases of 51% and 39%.

FLA director of consumer and mortgage finance and inclusion Fiona Hoyle says: “The second charge mortgage market returned another strong performance in September with further double-digit growth in new business by both value and volume.

“The distribution by purpose of loan in September showed 57% of new agreements were for the consolidation of existing loans, 15% for home improvements, and a further 22% for both loan consolidation and home improvements.”