The CML’s monthly gross mortgage lending figures showed a significant rise in June compared to May, with lending increasing by 29% to an estimated £20.5bn. Lending also jumped 15% compared to the same time last year where it stood at £17.8bn, the CML said.
Gross mortgage lending for quarter two now totals £52.2bn, compared to £44.5bn in quarter one and £51.6bn in quarter two of 2014.
Ben Thompson, managing director, estateagent4me.co.uk, said the recovery in lending figures was likely to be led by the buy-to-let market.
“Today’s increase in mortgage lending is likely to be the start of an uptick in lending for this year. As the wider economy improves and consumers start to feel more confident, activity in the market will continue to rise, which will push lending figures higher. The increase is likely to be led by buy-to-let lending, but we also anticipate increases in first-time buyer and home mover lending over the next few months,” he said.
CML economist Mohammad Jamei added: “Activity is picking up after a slow start to the year. Our lending figure for June may be flattered by the end of political uncertainties related to May’s general election, and the underlying picture is likely to be one of only modest recovery. This should be supported by favourable conditions in the economy, though it will be limited by rising house prices and affordability pressures.”
