Mortgage lending rose by £3.7bn in June, a 15 per cent increase from the £24.1bn lent in May and 24 per cent higher than the £22.4bn lent in June 2003, according to the Council of Mortgage Lenders.
A total of £27.8bn was lent last month and lending for house purchase reached its highest ever monthly figure of £13.6bn, accounting for 49 per cent of total lending.
Remortgaging also showed a substantial rise, up 16 per cent on the month to £10.8bn in June from £9.3bn in May.
CML director Michael Coogan says the signals in the housing market are mixed and June saw a bounce back to record lending levels with a strong resurgence in lending for house purchase.
He says: “In an environment of rising interest rates and rising house prices, there will come a point where affordability constraints mean than lending growth slows down. Early evidence from estate agency surveys suggests consumer appetite is already beginning to turn. But it may still be another few months before the lending surveys reflect this.”