First-time buyers continue to drive the mortgage market, according to new industry figures.
UK Finance (formerly the Council of Mortgage Lenders) said first-time buyers borrowed 26 per cent more than the previous month and 9 per cent more than in June last year.
Those buying their first home borrowed £5.9bn while buy-to-let loans totalled just £3bn, up 3 per cent on the year before and 3 per cent up on the previous month.
These figures are on a non- seasonally adjusted basis.
Paul Smee, head of mortgages at UK Finance said: "June's figures show a busy month in the mortgage market, with home movers having their highest monthly activity levels for over a year and an especially high number of loans for first time buyers.
"Buy-to-let activity remains subdued compared to its 2015 peak but consistent month-to-month since stamp duty changes in April 2016.”
Mortgage lending also rose for the second quarter as a whole. Home buyers borrowed £34.4bn, up 18 per cent on Q1 and 24 per cent on Q2 2016. This equated to 183,300 loans, up 16 per cent on Q1 and nine per cent on Q2 2016.
Within this, first-time buyers borrowed £14.8bn, up 18 per cent on last quarter and 10 per cent on Q2 2016. They took out 91,400 loans, up 15 per cent quarter-on-quarter and 6 per cent year-on-year.
But gross buy-to-let lending totalled £8.4bn, down six per cent on Q1 but up five per cent on Q2 2016. This equated to 55,400 loans, down six per cent on the previous quarter but up five per cent year-on-year.
rosie.murraywest@ft.com
