The latest monthly survey of mortgage lenders from the CML and DETR reports that gross mortgage lending rose from £13.6bn in May to £15bn in June.
Lending for house purchase rose to £9.6bn in June, up from £8.5bn the previous month and £7.7bn in June 2000. Although remortgage business as a proportion of total mortgage lending fell from 31% to 29%, the value of remortgaging rose to £4.4bn from £4.2bn.
The average new mortgage rates dropped from 5.53% to 5.45%, and the average new variable rates fell from 5.34% to 5.27%, while the average new fixed rates dropped 0.5% to 5.90%.
Michael Coogan, director general of the CML, said: ‘Mortgage lending has once again reached record levels in June. However, income multiples have been edging up over the last year as a result of house price rises. The likelihood is that over the coming months house prices and lending will start to level off in response to deteriorating affordability.’
Figures from both the British Bankers Association (BBA) and the Building Societies Association (BSA) showed another solid increase in lending. Building society gross advances were up from £2.2bn to £2.3bn, while gross mortgage lending from the banks was up 11% in June to £10.4bn from £9.3bn.