The latest mortgage lending data has added to the Bank of
The number of mortgages increased in June by 4% on the previous month, suggesting that tighter borrowing criteria had only cooled the market for a few months.
More than half of those loans were taken out by home movers, although the number of first-time buyers showed a bigger month-on-month increase, making up slightly less than half of the total at 28,600.
Affordability tests, which force lenders to check applicants' outgoings as well as their income to ensure they can afford repayments if interest rates increase, appeared to damp the market after they were imposed in April.
The central bank is under pressure to increase rates in response to the booming economy and the sharp increase in the number of people in work. Rising house prices have also triggered calls for an increase from the current historic low base rate of 0.5% to deter buyers and take the heat out of the market.
While some surveys have indicated that more sellers are putting their homes on the market to take advantage of recent price increases, especially in the south east, which might keep the market from overheating, Carney could be faced with the prospect of intervening again with even tighter affordability tests or increasing rates.
The CML figures showed the average first-time buyer borrowed 3.47 times their gross income to fund their purchase, compared to 3.46 in May, while the typical loan size increased by more than pounds 2,000 to pounds 123,865.
The typical gross income of a first-time buyer household also rose, to pounds 37,000 from pounds 36,500 in May.
Investors' appetite for property continued to grow, with the CML reporting a 23% year-on-year increase in the number of buy-to-let loans.
While the number of landlords remortgaging was up by 23% on
Mark Harris, chief executive of mortgage broker SPF Private Clients, said the figures suggested the new rules brought in with the mortgage market review (MMR) had not been detrimental to buyers.
"However, one area of the market which is subdued is remortgaging - all the more surprising when you consider the excellent rates available and the threat of an interest rate rise," he said.
"One can only assume that homeowners are either struggling to remortgage because of MMR or think it will be difficult, so aren't bothering to apply in the first place.
"Buy-to-let continues to grow as investors seek better returns than they can earn on cash and more certainty than the stock market . . . Investors are benefitting from cheap mortgage rates, less strict criteria and plenty of demand from tenants."
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