Gross mortgage lending up 29% in June

Gross mortgage lending in June showed a significant rise compared to the previous month, according to the Council of Mortgage Lenders.

It rose by 29% compared to May to an estimated £20.5 billion. In addition to the month-on-month rise, there was also a year-on-year increase of 15% on the £17.8 billion of lending undertaken in June 2014.

Gross lending in the second quarter of 2015 came to £52.2 billion which was up 17% from the previous quarter's £44.5 billion, and was a modest increase of 1% on the second quarter in 2014 when it totalled £51.7 billion.

Forward indicators of lending suggest an upturn will be felt in coming months, as CML's revised forecasts suggest.

CML economist Mohammad Jamei said: “Activity is picking up after a slow start to the year. Our lending figure for June may be flattered by the end of political uncertainties related to May’s general election, and the underlying picture is likely to be one of only modest recovery. This should be supported by favourable conditions in the economy, though it will be limited by rising house prices and affordability pressures.”