But lenders attribute strong rise between May and June largely to seasonal factors

Gross mortgage lending rose 17% between May and June, up from £10.5bn to £12.3bn, according to figures released today by the UK's Council of Mortgage Lenders (CML).

But the rise comes from a low base: lending for the month was 48% down from June 2008, when it was £24.8bn.

Gross lending in the second quarter of 2009 was £33.3bn, unchanged from the previous quarter, and the lowest quarterly reading since the first quarter of 2001.

CML economist Paul Samter said the figures were related to the time of year: “The pick-up in June's lending largely reflects seasonal factors, and these may well support lending volumes at moderately higher levels of the rest of the summer.

“Our forecast for gross mortgage lending of £145bn this year is unchanged,” he said.

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