The number of mortgages granted in June rose by 23% compared with May according to new figures from the Council of Mortgage Lenders which show there were 45,000 loans in June, worth £5.9 billion.
34,000 remortgages agreed, up 13% from May, but the CML says low interest rates have dampened demand for remortgaging in the second quarter. Loans to first-time buyers were also up with 17,200 approved compared with 13,700 loans in May. The figure remains below the 18,400 agreed in June last year.
CML economist Paul Samter said: “Low interest rates and realistic selling prices have helped generate a welcome increase in transactions. But there is some way to go before we reach normal levels of activity.”
“There are tentative signs that lending criteria are easing, but remortgaging demand is likely to remain subdued whilst interest rates stay at current levels.”