This represents a rise of 2% from £14.7 billion in May and 26% higher than the total of £11.9 billion in June 2012. This is the highest monthly estimate for gross lending since October 2008.
Gross lending for the second quarter of 2013 was therefore an estimated £42 billion. This represents a 24% increase from the previous three months and is the highest quarterly estimate since Q4 2008.
Commenting on market conditions in this month's Market Commentary, CML chief economist Bob Pannell observes:
"Improvements in the cost and availability of mortgage credit are underpinning a meaningful recovery in the housing market. In recent months, we have seen the strongest performance for mortgage lending since 2008.
"However, although the pace of first-time buyer activity is approaching a quarter of a million per annum, it is worth bearing in mind that this is still barely half of activity rates a decade earlier, and so far below what might be considered normal levels."
Henry Knight, Managing Director of Springtide Capital says:
"It is encouraging to see gross mortgage lending increase once again. The gloomy headlines of previous months now feel like a distant memory, as the housing market continues to show signs of rejuvenating itself. As the Funding for Lending scheme reaches its one year anniversary this month, it is clear to see the positive impact on the market has really begun to filter through to potential buyers. However, the question still remains as to the effectiveness of other government backed initiatives such as the proposed second phase of Help to Buy, when FLS alone appears to have already been so effective at boosting the market."
Sophie Hall, Head of Intermediary at Avelo, comments:
“The mortgage market is flying at the moment, and the turbulence from the financial crisis seems to be finally settling. First-time buyers are snapping up mortgage rates while they are still grounded, and this demand is boosting the housing market from the bottom. Government initiatives have added thrust, but we have also seen lenders thinking outside the box to encourage new buyers, typified by the new 0% product from Leeds Building Society.
“The summer months tend to see buyer activity tail-off, but this year we are likely to see demand for finance sustained. There is still a backlog of buyers who have put moves on hold since 2008 and these should continue to filter through over the coming months as confidence improves.”
