The number of mortgages approved in June was at its highest level since March last year, up 65 per cent to 35,235, according to the British Bankers’ Association.
Total value in cash terms, minus redemptions and repayments, rose 5.1 per cent year-on-year to £2.6 billion, making the six-month total £18.1 billion.
The association’s figures show that gross lending increased by £100 million to £7.9 billion between May and June, the first since April last year.
But the fact that gross lending is still 46 per cent below a year ago illustrates the extent of the credit crunch. Net lending is also half the long-term monthly average.
BBA statistics director David Dooks said: “Numbers of new home loans approved by the high street banks are recovering from the very low level last November and, so far this year, gross mortgage lending has topped £50 billion.”