The number of second charge mortgage agreements written in May increased by 22 per cent when compared to May 2018, rising to 2,378, according to data published by the Finance & Leasing Association (FLA).

This figure also increased significantly in value, soaring 23 per cent to £108m in the month. This trend was also seen when looking at the figures on a quarterly basis, with the value of new deals in the three months leading up to May rising by 22 per cent to a total of £315m, while in terms of new agreements, the figure rose to 6,968 (26 per cent).

Commenting on the data, FLA head of consumer and mortgage finance Fiona Hoyle said: “The second charge mortgage market remained buoyant in May, as monthly new business reached more than £100 million for the second time this year.”

The FLA further revealed today that the overall consumer finance market new business figures dropped by 2 per cent in May, when compared to the same month last year.

The retail store and online credit sector reported new business up in May by 2 per cent compared with the same month in 2018, while credit card and personal loan new business together fell by 5 per cent.

FLA head of research and chief economist Geraldine Kilkelly added: “The consumer finance market reported a modest fall in new business of 1% in the first five months of 2019 compared with the same period in 2018.

“We continue to expect low single-digit new business growth in 2019 as a whole, with consumer confidence about their own personal finances remaining relatively upbeat.”

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