It rose by 29% compared to May to an estimated £20.5 billion. In addition to the month-on-month rise, there was also a year-on-year increase of 15% on the £17.8 billion of lending undertaken in June 2014.
Gross lending in the second quarter of 2015 came to £52.2 billion which was up 17% from the previous quarter's £44.5 billion, and was a modest increase of 1% on the second quarter in 2014 when it totalled £51.7 billion.
Forward indicators of lending suggest an upturn will be felt in coming months, as CML's revised forecasts suggest.
CML economist Mohammad Jamei said:
"Activity is picking up after a slow start to the year. Our lending figure for June may be flattered by the end of political uncertainties related to May’s general election, and the underlying picture is likely to be one of only modest recovery. This should be supported by favourable conditions in the economy, though it will be limited by rising house prices and affordability pressures."
Richard Pike, Phoebus Software sales and marketing director, commented:
“As predicted activity in June was more brisk than in the previous few months, which seems to confirm that the much talked about uncertainty around the general election had a real impact. Going forward, with less uncertainty and a more stable political picture, I expect the market to continue to improve. Although the Governor of the Bank of England yesterday warned that interest rate rises are coming closer, most believe this will still not happen until 2016, and any rise is likely to be small which means we still have very competitive rates and products for the foreseeable. This should help the health of the whole of market, especially the remortgage sector which is still subdued."
Henry Woodcock, Principal Mortgage Consultant at IRESS, added:
“After a sluggish few months, the mortgage market has gone into over drive. The uncertainty of the election is already very distant in the rear view mirror, as record low mortgage rates, strengthening consumer confidence and a strong labour market feed through into demand. All of this points towards a positive second half of the year. Yes, the likelihood of interest rates rising is increasing, but Mark Carney has reiterated that they are unlikely to hit anywhere like their historic norm, meaning mortgage rates are likely to remain attractive enough to stimulate borrower demand in the medium-term.”
