Mortgage lending up 16% in June: CML

Gross mortgage lending rose 16 per cent month-on-month to £20.7bn in June, according to the Council of Mortgage Lenders.

The June figure is 3 per cent higher than the same month in 2015.

This is the highest June figure in eight years when gross lending reached £22.6bn in 2008.

Gross mortgage lending for the second quarter of 2016 was £56.1bn.

This is 10 per cent lower than the first quarter of this year, but 8 per cent higher than the second quarter of 2015.

CML senior economist Mohammad Jamei says: “The result of the EU referendum is likely to affect the housing market, but there remains considerable uncertainty. Although mortgage firms have ample lending capacity, activity levels are likely to bear the brunt of any market adjustment over the next six months or so, as buyers and sellers wait to get a clearer idea of where we might be headed.

“But as with the economy, the UK housing market’s starting position is relatively favourable, with transactions having increased by almost 80 per cent from post-crisis lows. Over the next six months, activity is likely to soften modestly, while lending will be driven more by remortgaging and less by house purchases.”