Second charge mortgage new business volumes rose by 154% to £81m when comparing April 2020 and April 2021, according to the Finance & Leasing Association (FLA).
Over the same time frame, the number of new agreements increased by 176% to 1,890.
In the three months to April 2021, the value of new business rose 2% to £236m, and the number of new agreements was up 7% to 5,547.
Looking at the 12 months to April 2021, compared to the previous year, the value of new business dropped 43% to £684m, and the number of new agreements is also down, having fallen 38% to 16,620.
Additionally, consumer finance new business grew by 147% in April 2021 compared with the same month in 2020.
In the first four months of 2021, new business was 1% higher than in the same period in 2020.
The retail store and online credit sector reported new business up by 31% in April compared with same month in 2020, and growth of 8% in the first four months of 2021.
The credit card and personal loan sectors together reported new business up by 61% in April compared with the same month in 2020, but a fall of 12% in the first four months of 2021.
Fiona Hoyle, director of consumer and mortgage finance and inclusion at the FLA, said: “The second charge mortgage market returned to growth in April in line with expectations given the adverse impact of the first lockdown on new business levels in the second quarter of 2020.
“The market is expected to record a strong recovery in new business levels during the second half of 2021.”
Geraldine Kilkelly, director of research and chief economist at the FLA, added: “The strong pick-up in consumer finance new business was expected with the further easing of lockdown restrictions in April and given the adverse impact of the first lockdown on new business levels during the second quarter of last year.
“The latest figures show that the recovery in April was broad-based, with new business provided through personal loans and credit cards growing, year-on-year, for the first time since the pandemic began.
“Pent-up demand and an improvement in consumer confidence are expected to contribute to a strong recovery during the second half of 2021, with our latest research suggesting that consumer finance new business will grow by 14% in 2021 as a whole, and by a further 16% in 2022.”