BBA: Mortgage lending holds steady
Meanwhile approvals for remortgages decreased slightly from 20,670 in May to 20,478 in June.
However on a year-on-year basis the number of approvals for both house purchase and remortgaging are some 33% higher than this time last year.
Paul Hunt, managing director of Phoebus Software said: “May’s small rise in mortgage lending suggests the market is beginning to shape up.
“The Funding for Lending scheme is boosting mortgage availability slowly but surely, while the Help to Buy scheme will make life easier for first time buyers and stimulate the housing market chains.
“Although the government’s done its part, banks and building societies have played a significant role in helping to kick start the housing market.
“Lenders’ proactivity has been vital in keeping the property market buoyant. Funding conditions are difficult, but we are seeing more competition amongst lenders.
“That’s producing better value products for borrowers and boosting opportunities for first time buyers.
“It is crucial that lenders continue to offer good value mortgage deals to a wider pool of potential buyers.”
But Duncan Kreeger, director of peer-to-peer lender West One Loans, said that the largest lenders were still making very little progress when it came to improving lending levels.
He said: “Twelve of the BBA member brands – or 60% – are still getting special assistance from the taxpayer.
“And yet in June these lenders delivered zero net mortgage lending, alongside even fewer business loans than a year ago.”
In general, economic progress has to be based on solid foundations – credit needs to stimulate real investment.
But he added: “Banks aren’t learning these lessons fast enough and that’s why they keep losing market share.
“Alternative finance is now the only option available to many businesses, and is filling the gap being left by mainstream banks.”