However this still represented a decline compared to Q2 2014.
First-time buyers continue to drive the market, accounting for 57% of house purchase activity. Remortgage lending also rose by a third year-on-year to reach its highest level since 2011 in Northern Ireland.
First-time buyers in Northern Ireland typically borrowed 2.79 times their gross income compared to the UK average of 3.38. The typical loan size for first-time buyers was £81,275 in the second quarter, up from £78,300 in the first quarter.
The relatively low level of interest rates saw first-time buyers' payment burden remaining relatively low in the second quarter at 16.2% of gross income being spent to cover capital and interest payments, lower than the first quarter's 17.0% and the 18.4% UK average.
Home movers in Northern Ireland typically borrowed 2.32 times their gross income, up from 2.29 the previous quarter but less than the same quarter last year and the UK average of 3.08.
The typical loan size for home movers was £104,295 in the second quarter, unchanged from the previous quarter, but substantially lower than the £160,994 UK average.
Home movers' payment burden in the second quarter saw them spend 15.1% of their gross household income to cover capital and interest payments, a slight change from 15% in the first quarter, but also substantially lower than the 18% UK average.
Paul Smee, director general of the CML, commented:
"Remortgage lending has shown growth for the third quarter in a row, a marked difference to its rather subdued levels over the past few years, and is now at it's highest since mid-2011 in Northern Ireland. With an interest rate rise becoming more likely, it appears people are looking to secure competitively-priced mortgage deals.
"House purchase lending has increased compared to the first quarter which is unsurprising given the traditional lull in lending during the winter months. There was a decline year-on-year, but this is still the second best performing second quarter in Northern Ireland since 2007 and we have forecast activity to continue to pick up going forward."
