Lending rose by 2% on the previous month to an estimated £16.2bn but was 3% lower than the £16.8bn advanced in May 2014.
CML economist Mohammad Jamei said: “The economic environment is one that should support increased activity in the near term coupled with low mortgage rates. But while we expect these factors to support activity there is a limited upside, driven mainly by affordability constraints.”
The Bank of England’s data on mortgage approvals which is used as a forward indicator of market activity revealed that house purchase and remortgage applications agreed by lenders reached a 14-month high in April.
Jonathan Harris, director of mortgage broker Anderson Harris, said: “With the uncertainty caused by the general election out of the way gross mortgage lending has edged up month-on-month. This is in line with other forecasts, pointing to a gentle recovery in a housing market which has been paralysed for many months.”
Harris said that the low rates currently being offered by the market were likely to continue into the autumn.
