Data published today (9 September) by the Financial Conduct Authority and the Prudential Regulation Authority has revealed that the amount of gross advances for house purchase rose by £4.8bn in the second quarter this year, compared with Q1.
The total figure of £36.1bn was also 33 per cent higher than Q2 2013.
The statistics, derived from mortgage lenders and administrators return data, show that the proportion of lending for house purchase in the second quarter this year was 70.1 per cent, about 3.7 per cent higher than in Q1.
Elsewhere, the value of residential loans advanced to first time buyers increased over the quarter to £11.4bn, £3.4bn greater than in Q2 2013.
The value of remortgage lending increased 5 per cent from £12.4bn in Q2 2014, compared with £1.8bn in Q2 2013. The buy-to-let proportion of lending decreased from 14.4 per cent in Q1 2014 to 13.6 per cent in Q2 2014.
Despite the decrease over the quarter, this represented a total increase over the past year of 1.5 per cent. There was also an increase in value terms over the past year, from £5bn in Q2 2013 to £7bn in Q2 2014.
The research also revealed that the proportion of gross advances at fixed rate interest rates on residential lending increased for the seventh consecutive quarter to 82 per cent. This is an increase of 6.7 per cent compared with Q2 2013 and reflects growing expectations rates are set to rise.
The figure also constitutes the highest proportion since the series began in 2007. The proportion of balances outstanding on fixed rate loans rose by 1.9 per cent since Q1 2014 to 37.1 per cent.
The figures come as evidence suggests that lending has begun to slow in Q3, as MMR review rules bed in and Bank of England measures to reduce lending at high income multiples have been implemented across the sector.
