The level of remortgage loans plummeted to 23,400, down by a quarter on the same month last year and over 20% against the previous month.
Strong performance in the first-time buyer sector prevented the overall market from contracting. The number of loans taken out by first-timers hit 19,200 in June, up 9.1% on figures posted a month earlier and 3.8% on the previous year.
Over half of properties sold to first time buyers cost between £125,000 and £250,000, with the value of loans up by 9.1% to £2.4m.
The house purchase market saw 47,500 loans in June, up 1.7% on the previous month but slightly down year-on-year. Gross lending totalled £11.7bn in June, 6% down on May’s total of £12.5bn and also 7% lower than last June.
CML director-general Paul Smee commented: “Lending figures have see-sawed in the first half of the year, and we may see more fluctuations in the coming months as the effects of the Olympics and other special events in the UK this year are reflected in our lending numbers.
“Within that broader context, first-time buyer activity is showing some signs of resilience as we move away from the obvious effects of the Stamp Duty concession, a trend that it would be good to see maintained.”
