But total value of lending still strongly down on a year earlier, says CML
Banks gave 23% more mortgages for house purchases in June than in the previous month, according to the latest figures from lenders.
The Council of Mortgage Lenders (CML) said that 45,000 loans for house purchases were advanced in June, up 23% on May but down 6% on a year earlier.
However, the CML warned that the rise should be seen in the context of very low values in historical terms - the 45,000 figure is less than half the June average of the previous seven years.
In addition, the value of loans fell more sharply from the previous year because of the falls in house prices. The £5.9bn in total new lending represented a 17% drop from last June.
The value of loans for first-time buyers increased by 26% from May to £1.9bn, at an average loan-to-value ratio of 75%. This compared with a ratio of 87% for the same month a year earlier, while the value of loans was 21% higher last year than this year.
CML economist Paul Samter said: “Low interest rates and realistic selling prices have helped generate a welcome increase in transactions. But there is some way to go before we reach normal levels of activity.