This is 4% higher than May (£16.8 billion), 17% higher than June last year (£14.9 billion) and the highest monthly figure since October last year (£17.6 billion).
Gross mortgage lending for the second quarter of this year was therefore an estimated £50.8 billion. This represents a 10% increase from the first three months of this year, and a 21% increase on the second quarter of 2013 (£41.9 billion).
Commenting on market conditions in this month’s Market Commentary, CML chief economist Bob Pannell observes:
"The macro-prudential interventions announced by the Financial Policy Committee in late June are finely calibrated and precautionary, but could nevertheless reinforce April’s Mortgage Market Review in tipping the UK towards a more conservative lending environment.
"It is difficult to gauge the short-term direction for house purchase activity and mortgage lending more generally, given unknown regulatory impacts and uncertainty as to when the first in a series of interest rate increases will take place.”
Henry Woodcock, Principle Mortgage Consultant, IRESS, said:
“Faint signs that the rapid growth in the mortgage market is starting to peter out are becoming clearer. The market is still readjusting to the combination of tougher affordability checks and increased levels of red tape brought by the MMR. On top of this, while the prospect of rising house prices is attracting many to the benefits of homeownership, it is also making it more difficult for those with the smallest deposits to get their foot on the property ladder.
"That’s not to say lending will fall off a cliff by any means. There is still a strong appetite from buyers, and an impetus from those with large enough deposits to secure mortgage finance before interest rates are hiked. This will underpin activity in the short-term while the market acclimatises to post-MMR processes.”
Alan Cleary, Managing Director of Precise Mortgages comments:
“With yet more speculation that MMR is slowing down the market and the Bank of England will start to increase interest rates in the imminent future, it’s encouraging to see that buyers aren’t deterred. The latest CML data reaffirms this optimistic outlook with gross lending up 4% in June to £17.5 billion.
“Despite this positive announcement, it is clear from recent reports in the industry that many are still struggling to find affordable properties and are feeling un-served by mainstream lenders. Our Mortgage Voice report revealed that almost a third of consumers believe that while access to mortgages has broadly improved, it‘s still not enough. Consumers need to be reassured that there are products on the market that cater to all credit worthy buyers and they can continue to climb the property ladder.”
