The second charge mortgage market reported growth in October, with new business up 20% by value and 19% by volume compared to the same period in 2016, according to the Finance & Leasing Association (FLA).

The number of new second charge mortgages was 1,880 and the value of new business was £85m.

Fiona Hoyle, head of consumer and mortgage finance at the FLA, said: “A second mortgage continues to be a useful option for customers seeking to raise additional funds without wanting to change their existing mortgage, and are regularly used to fund home improvements.”

Harry Landy, managing director at Enterprise Finance, said: “Consumer confidence has recovered from last month’s blip, and the second charge market is continuing its upward trajectory that saw six months of consecutive month-on-month growth from March to August. Whether it is to fund renovations, help a family member with a deposit, or consolidate household debts, we’ve seen more borrowers taking out second charge mortgages – many at a higher value – and this has led to a strong year for the sector.

“We are cautiously optimistic that this increase will continue into next year, but it is important that brokers are aware of the range of specialist financing options around, and can therefore provide tailored advice to borrowers.”