New second-line loans rose by 37% in February, according to figures from the Finance & Leasing Association (FLA).
New loans rose to £214 million in the month, despite being new second charge agreements increased by 27% to 3,904.
FLA research director and chief economist Geraldine Kilkelly said: “The second mortgage market reported robust new production growth in February, with new production by value reaching February’s highest level since 2008.
“By providing a secured alternative to unsecured loans with higher costs, second mortgage loans are proving popular with households as they help manage affordability pressures while maintaining financial stability.
“The UK economy now faces a more challenging outlook as conflict in the Middle East is likely to weigh on activity, confidence and financial conditions. In this environment, the second mortgage market will continue to play an important role in supporting household budgeting, while affordability considerations and wider uncertainty will determine the pace of growth in the coming months.”