Second charge business up 15pc

On a monthly basis year-on-year the number of second charge mortgage contracts fell by 3%, but the value of new business was still up by 15%.

Overall the consumer finance industry saw an 8% increase in new business year-on-year in May.

Geraldine Kilkelly, head of research and chief economist at the Finance and Leasing Association, said: “Consumer credit has played an important role in the economic recovery so far and will continue to do so.

“Our figures show an increase in new business of 13% in the first five months of 2014, driven by growth across all credit sectors.”

Credit card and personal loans new business was up by 4% in the same period, while point-of-sale sector grew by 15%.