Mortgage lending grows 2% in June

Mortgage lending was up 2 per cent last month from £14.7bn in May and 26 per cent more than the total of £11.9bn in June 2012, according to the Council of Mortgage Lenders.

The CML estimates that total gross mortgage lending in June increased to £15bn.

Gross mortgage lending in June was at the highest level since October 2008.

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Gross lending for the second quarter of 2013 was therefore an estimated £42bn.

This represents a 24 per cent increase from the previous three months and is the highest quarterly estimate since the fourth quarter of 2008.

Bob Pannell, chief economist of the CML, said: “Improvements in the cost and availability of mortgage credit are underpinning a meaningful recovery in the housing market. In recent months, we have seen the strongest performance for mortgage lending since 2008.

“However, although the pace of first-time buyer activity is approaching a quarter of a million per annum, it is worth bearing in mind that this is still barely half of activity rates a decade earlier, and so far below what might be considered normal levels.”