UK Finance has estimated that gross mortgage lending for the total market in June was £23.5bn, 2.1% higher than a year earlier.
The number of mortgage approvals by the main high street banks in June fell by 2.1% compared to the same month a year earlier. Within this only remortgaging approvals increased and were 3.4% higher than for the same period a year earlier, this was offset by the 4.7% reduction in house purchase approvals and 4.3% drop in other secured borrowing.
Credit card spending was 4.7% higher than a year earlier, with outstanding levels of card borrowing having grown by 5.6% over the year. Outstanding overdraft borrowing was 5.8% lower compared to the same time last year.
Eric Leenders, managing director of personal finance at UK Finance, said: “Lending to households has continued to grow modestly in line with recent trends, with increased borrowing on credit cards mirrored by a fall in overdraft borrowing.
“Card spending saw relatively strong growth year on year, with retail sales buoyed by the sunshine and recent sporting events.
“Meanwhile growth in mortgage lending continues to be driven by remortgaging, as borrowers take advantage of attractive deals ahead of an anticipated Bank rate rise.”
John Goodall, CEO of Landbay, added: “June was yet another strong month for gross mortgage lending. Any signs of a summer slowdown were offset by a sudden rush to lock into the attractive deals on the market, with a rate rise on the cards for the coming months if not weeks. This has no doubt lit a fire under first-time buyers and those coming to the end of fixed-term mortgages in particular.
“While overall lending grew, we cannot ignore subdued activity among home movers. Rising house prices and substantial stamp duty costs have stumbled the market and sales remain significantly low. All eyes are now on the new housing minister to offer a long term plan for growth in the market, including concrete plans for greater construction to enhance affordability and encourage movement in the market.”
