Second charge lending in February was 22% higher than the same month last year, at £130m, figures from the Finance & Leasing Association reveal.
The total number of new second charge loans was also 17% higher than in February 2023, at 2,819, it found.
However, looking at the 12 months to February compared to the previous 12 months, lending was down by 9% at £1.42bn.
Over the same timeframe, the total number of loans was also lower than the previous year, down by 8% to 30,935.
FLA director of consumer and mortgage finance and inclusion Fiona Hoyle says: “The distribution by purpose of loan in February 2024 showed that 60% of new agreements were for the consolidation of existing loans, 13% for home improvements, and a further 23% for both loan consolidation and home improvements.
“As always, customers who are concerned about meeting payments should speak to their lender as soon as possible to find a solution.”
