Despite this, the value of new business dropped by 5% over the timeframe.

Overall, the number of new agreements was 2,048, which in monetary terms equated to £88m in March 2021.

In the three months to March, the number of new agreements was down 25% to 4,959, equating to £211m.

On an annual basis, the quantity of new agreements dropped by 45% to 15,415, with the value of the new business noted at £635m.

Figures also show that consumer finance new business rose in March 2021 by 7% compared with the same month in 2020.

Fiona Hoyle, director of consumer and mortgage finance and inclusion at the Finance & Leasing Association (FLA), said: “In March, the second charge mortgage market reported its highest monthly new business volumes since the same month in 2020.

“FLA members are increasingly optimistic about the outlook and we expect to see a strong rebound in demand over the next year.”