UK mortgage lending rises sharply

June saw a "resurgence in lending"

Mortgage lending rose sharply in June, figures from the British Bankers' Association (BBA) have shown.

Lending rose by £6.5bn, up from £5.1bn in May, and breached the recent monthly average of £5.7bn.

A similar picture came from the Council of Mortgage Lenders latest data, which showed a record £27.8bn was advanced in June, up from £24.1bn in May.

The BBA and the CML both said that mortgage and unsecured personal lending had resumed rising in June.

"June saw a bounce back to record lending levels, with an especially strong resurgence in lending for house purchase," said CML director general Michael Coogan.

However, he was doubtful that the upsurge in lending would be sustained.

"In an environment of rising interest rates and rising house prices, there will come a point where affordability constraints mean that lending growth slows down," said Mr Coogan.

His view appeared to be supported by the findings of the latest housing market survey from the Royal Institution of Chartered Surveyors (RICS).

RICS said its members had reported house prices rising at their slowest rate for 10 months.

Nevertheless, next week, the Bank of England is expected to reveal that total UK personal debt has topped the £1 trillion mark for the first time.