Mortgage lending hits five-year high in June

Figures from the trade body for June showed gross mortgage lending increased to £15bn, reflecting a rise of 2 per cent on May.

It also showed a 26 per cent increase on the amount recorded in June 2012.

The total gross lending for the second quarter of this year was estimated at £42bn, which was the highest quarterly estimate since the last quarter of 2008.

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Bob Pannell, chief economist for the CML, said: “Improvements in the cost and availability of mortgage credit are underpinning a meaningful recovery in the housing market.

“However, although the pace of first-time buyer activity is approaching a quarter of a million a year, it is worth bearing in mind that this is still barely half of activity rates a decade earlier.”

Adviser view

Mark Harris, chief executive of London-based mortgage broker SPF Private Clients, said: “The outlook for the housing market continues to improve and is reflected in the official numbers.

“Government schemes such as Funding for Lending and Help to Buy are already having a positive impact, and we expect this to continue when the mortgage-guarantee element of Help to Buy is introduced in January.”