Analysis by the regulators also highlighted the competitiveness of the mortgage market this year.
In Q2 2018, the proportion of mortgage loans at less than 2% above BoE base rate (BBR) continued to increase to 76.2% of the market.
In addition, the percentage of loans extended 4% or more above BBR has decreased to 2.9% and the percentage of loans between 2% and 3% above BBR decreased by 0.19 percentage points.
The £66.7bn total lending was 6.4% up on the same period last year and 6.9% up on the first three months of 2018.
However, the rise in volume was driven by higher loan-to-value (LTV) and loan-to-income (LTI) lending as first-time buyers took a greater role in the market, rising to take 21.4% of new lending.
The share of new lending in the highest LTI brackets in Q2 2018 increased overall compared to last quarter from 43.9% to 45.1% in Q2 2018
There has also been an increase in the proportion of loans above 90% LTV.
Increasing house purchases
House purchase loans grew by 1.9 percentage points to 63.0%, driven by an increase in home movers.
Meanwhile, re-mortgaging declined by two percentage points as a proportion of new lending from Q1 2018, accounting for 30.8% of new lending at £20.5bn in Q2.
The share of buy-to-let borrowing returned to 13.1% of new lending, a similar level as last year, after a slight uptick in the first quarter.
