The Finance & Leasing Association (FLA) has revealed its members’ new business figures for the second charge mortgage market in May 2017.

During the month, £87m of second charge new business was completed, up 26% year-on-year.

For the year to the end of May, £259m has been transacted, at 25% rise on the same period last year.

Fiona Hoyle, head of consumer and mortgage finance at the FLA, said: “Second charge mortgage new business has ebbed and flowed over the past year, which was to be expected following the significant changes brought about by the market’s transfer into MCOB in March 2016. While the market is still in the bedding-in process, in the first five months of 2017 new business was up 12% by value and 9% by volume, and May witnessed the third consecutive month of growth.

“Customers are borrowing for a wide range of reasons, including renovating or extending their property.”

Harry Landy, managing director at Enterprise Finance, added: “Consumer confidence remained robust in May, and another consecutive month of increased lending is a positive indication that the second charge market is in good shape. Despite the ongoing political and economic uncertainty – a result of the snap General Election and Brexit vote – it’s encouraging to see the market return to the levels seen before the Mortgage Credit Directive implementation.

“This three month trend of consecutive growth is also further indication that the MCD is finally having the positive effect on the market many thought it would have straight away. As a result of MCD and brokers needing to be aware of second charge mortgages, they are becoming more of a mainstream option to raise capital as many brokers and consumers realise the benefits. We are optimistic that the second half of 2017 will continue this upward trend.”