Figures released by UK Finance show that in July, gross mortgage lending rose 7.6 per cent on a yearly basis, totalling an estimated £24.6bn as compared to £22.87bn.
This number is similar to the amount of lending carried out in June 2018 -£22,84bn, giving a monthly rise of 7.6 per cent, too.
Of this amount, £15.6bn was lent by high street banks, a 10.5 per cent annual rise.
The data also reveals that the number of remortgage approvals increased from 27,514 in July 2017 to 28,294 a year later – 2.8 per cent more. There was a 5 per cent drop on a monthly basis though, from 29,819 in June to 28,294 in July.
House purchases, however, dropped 0.6 per cent, from 44,240 to 43,967 on a yearly basis.
UK Finance director Peter Tyler comments: “[The growth in gross mortgage lending was driven largely by remortgaging] as homeowners locked into attractive deals in anticipation of the recent base rate rise.”
Phoebus Software sales and marketing director Richard Pike says: “The market has been propped up recently by the continuous buoyancy in remortgaging but, with few people now left on variable or tracker rates, this too is likely to slow. As we approach the deadline for Brexit even the threat of a no deal is likely to weigh heavy across our economy, how that will manifest itself in the housing market is difficult to predict, but it could bring along a period of stagnancy while people wait to see what happens.”
SPF Private Clients chief executive Mark Harris adds: “Lenders remain keen to lend and offer competitive products, particularly in the remortgage space. With other incentives such as cash back increasingly being offered to those remortgaging, combined with fears of further potential rate rises, we expect this area of the market to remain particularly strong in coming months.”