"Despite the initial surprise of the result, and particularly since the calming statement made by the Governor of the Bank of England the swap markets have not reacted too badly to the outcome."
However the latest Bank of England Money and Credit report shows that gross lending secured on dwellings fell further, from £19.2 billion in April to £18.9 billion in May.
Total lending to individuals increased by £4.3 billion in May, compared to £1.6 billion in April and an average of £5.1 billion over the previous six months.
The number of mortgage approvals rose slightly, from 66,250 in April to 67,042 in May.
The number of approvals for remortgaging was 42,919, compared to the average of 41,019 over the previous six months.
Peter Williams, Executive Director of IMLA, said: “Stamp duty changes for buy-to-let properties and second homes meant there was an air of inevitability about the April dip in mortgage approvals, which has now been followed up by a modest recovery in the lead-up to the UK’s referendum on its European Union membership. House purchase activity hasn’t quite returned to the heightened levels of early 2016, but the homebuyer market has visibly strengthened over the last 18 months.
“Today’s data also shows record remortgage activity with almost 43,000 approvals in May: the highest of the post-Mortgage Market Review era. A resurgence in remortgaging has been underway for the last six months, with more than 40,000 loans approved every month since December."
Jeremy Duncombe, Director, Legal & General Mortgage Club, commented: “Mortgage approvals flattened in May, as the nation geared up to vote in last week’s referendum. Uncertainty may have led some borrowers to put on hold their aspirations of owning a home.
"However, despite the initial surprise of the result, and particularly since the calming statement made by the Governor of the Bank of England the swap markets have not reacted too badly to the outcome. As such, there does not seem to be an immediate risk of a wholesale withdrawal or re-pricing of fixed rate deals. Although lenders are likely to be keeping this under active review, some longer term fixed rates are even starting to reduce."
