First-time buyers saw a 22 per cent month-on-month increase in activity compared to May, but little change when compared to June last year, according to data from the Council of Mortgage Lenders.
There were 28,300 new loans issued to first-time buyers in June, which totalled £4.2bn, the data showed.
In total, gross lending in June was £20.1bn, up 25 per cent on May and 13 per cent up on June last year.
Home mover lending also saw substantial monthly increases, jumping by 21.1 per cent and totalling 32,700 loans in June. This equated to £6.4bn.
Remortgage activity increased by 31 per cent over the month to £5.1bn.
Buy-to-let also jumped by 17 per cent in the month with house purchases equating to £1.4bn in June and remortgages equating to £1.8bn after seeing a 29 per cent monthly increase.
Paul Smee, director general of the CML, commented that the uptick in remortgage activity among home-owners was notable, perhaps reflecting an increased desire to lock into competitively-priced mortgage deals in advance of any rise in rates.
“It is likely that people are now beginning to feel a rate rise is a realistic prospect, and not just a distant theoretical possibility.
“After a slower than expected start to the year, lending now appears to be picking up as we expected, and in line with our recently revised forecasts.”
Mark Harris, chief executive of mortgage broker SPF Private Clients, said that buyers who may have put decisions on hold are now more willing to take the plunge.
“There is more remortgaging activity which comes as no surprise given recent comments from the Bank of England over interest rates - few lenders have increased their fixed-rate pricing but there are still plenty of excellent deals available and will continue to be, as lenders compete for business.
“Lenders continue to struggle to meet volume targets and will absorb much of any underlying increase in swap rates via lower margins.”
He added that it remains to be seen whether the recent changes to claiming mortgage interest relief and the wear and tear allowance will have a negative impact on the buy-to-let sector.
peter.walker@ft.com
