The latest figures from the Finance & Leasing Association show that there were 3,293 loans in May, which was 11% higher than in the same month last year.

The total lent over the full year to May was £1.84bn, an increase of 24% on the amount lent over the year to May 2024.

More than 37,000 second charge loans were advanced over 12 months, which was 16% higher than the previous year’s figure, according to the trade body.

FLA director of consumer and mortgage finance and inclusion Fiona Hoyle says: “The second charge mortgage market returned to growth in May, reporting its second highest total of new business so far this year by both value and volume.

“The proportion of new agreements which were for the consolidation of existing loans was 58.9%; for home improvements and the consolidation of existing loans was 22.4%; and for home improvements only was 11.9%.

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