Mortgage lending falls 2 per cent

Mortgage lending fell back by 2 per cent during May despite ongoing signs that activity in the housing market is beginning to recover.

A total of £10.3bn was advanced during the month, down from £10.5bn in April and 58 per cent lower than in May last year, according to the Council of Mortgage Lenders.

The group said the decline in overall lending was likely to have been driven by a further fall in the number of people remortgaging, with this offsetting a slight pick up in advances to people buying a new home.