Second charge mortgage lending has surged over the past year, according to the latest figures from the Finance & Leasing Association (FLA).

The value of new business reached £98m in February, a rise of  20% compared with the same month  last year; while the number of new agreements rose by 24% to 2,163.

On an annual basis, new business reached almost £1.1bn in the 12 months to February – a rise of 6%. A total of 24,249 loans were taken out, representing an increase of 9% on the year.

Fiona Hoyle, head of consumer and mortgage finance at the FLA, said: “In February, the second charge mortgage market reported its strongest rate of new business volumes growth since May 2017. The popularity of second charge mortgages continues to grow as people opt to improve, rather than move.”