The research found banks completed £11.2bn in gross mortgage lending during the month of June. This figure is 24% higher than the same month in 2013.
Despite a slowdown following the introduction of the Mortgage Market Review (MMR) in April the market showed an increase on the previous month, with June’s figures £1.3bn up on May’s total.
Mortgage approvals for house purchase also started to recover following MMR and were 14% higher than a year ago. However, other areas of the market did not fare so well with remortgaging 12% down on June 2013 and other mortgage lending tumbling 34%.
Mark Harris, chief executive of mortgage broker SPF Private Clients, said the remortgage market had been hit hardest by the new regulations.
“Mortgage approvals are on the rise once more after four months of decline, which may come as a surprise as many agents are now talking of a cooling off in the housing market,” he said. “However, the mortgage market remains busy, with many borrowers taking advantage of the cheap rates available.
“Remortgaging is down on the same period as last year – perhaps surprising with the excellent mortgage rates still on offer and the fear of an interest rate rise which should encourage borrowers to ditch their lender’s standard variable rate.
“MMR is likely to be having an impact here: either homeowners are struggling to remortgage under the new rules or worry that they will, and so are not bothering even trying. However, with an interest rate rise coming at some point it is important that borrowers plan ahead and ensure they can afford their mortgage.”
