The latest report from the Council of Mortgage Lenders (CML) says that the number of mortgages granted to home buyers in June rose by 23% on the previous month of May and stand at just 6% lower than in June last year.
The CML say that there is currently some stability in the housing market although still far from returning to the boom years.
£5.9bn in mortgages was granted by banks and building societies in June 2009, reaching the highest level since July 2008. Of course the market had already been affected by the financial crisis at that time and so the figures may be increasing, but still have along way to go to reach the pre-crisis levels.
The number of first time buyers being offered mortgages increased by 26% on the previous month, 17,200 loans worth £1.9bn were granted to first timers in June. The average deposit required for a first time purchase now stands at 25% compared to half that or even less just a couple of years ago.
“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,” said CML economist Paul Samter.
“There are tentative signs that lending criteria are easing, but remortgaging demand is likely to remain subdued whilst interest rates stay at current levels.”
The average home in the UK is now valued at £191,423 says the report.
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