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Mortgage lending for June second highest on record

Mortgage lending has fallen from an all-time high in May but is still up from June last year, according to the Council of Mortgage Lenders and the Building Societies Association.

Despite a seasonal fall, the trade bodies say their figures for last month show the housing market remains buoyant.

The CML says gross mortgage advances for June totalled £17.1bn in June, which was higher than the £14.9bn achieved in June last year but lower than May&#39s record of £20.3bn.

Loans for house purchase were £10.5bn last month, up from £9.7bn in June last year but a drop from £12bn in May. Remortgaging totalled £5.6bn in June, up from £4.3bn last year but down from £6.9bn last month.

The number of loans made to first-time buyers declined to 33 per cent of the total in June, from 43 per cent last year and 37 per cent in May.

The CML warns that this fall is an indication that affordability for first-time buyers is becoming more difficult.

BSA figures show their members&#39 gross advances amounted to £2.8bn in June, up from £2.3bn last month but down from £3.4bn in June.

CML director general Michael Coogan says: “After several months of buoyant figures which culminated in record lending in May, it is no surprise that we should see a decline this month. This latest figure is still the second highest on record and shows that the housing market remains buoyant.”

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