Mortgage lending 'below average' in June

The British Bankers' Association (BBA) has released figures for the major British banking groups in June, revealing that mortgage lending was below trend in the month.

According to the group, net mortgage lending rose by an underlying £5.1 billion in June, down from £5.8 billion in May and lower than the previous six-monthly average of £5.3 billion.

David Dooks, director of statistics for the BBA, said the mixed figures made it difficult to assess the state of the market.

"The contrast between May's strong rise in mortgage lending and a much weaker figure in June makes it difficult to gauge the current impact of higher interest rates on mortgage demand but we've seen the trend gradually slowing since the turn of the year," he said.

The association's figures revealed that total sterling lending to the UK private sector rose by an underlying £11.7 billion in June.

This is lower than the increase of £18.9 billion recorded in May and the previous six-month average of £12.1 billion.

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