Gross mortgage lending in May stood at £18.2bn and was the highest monthly amount on record, according to the latest figures from the British Bankers Association (BBA).
It says the lending figure for May was 18% above that of April and 27% higher than May last year.
Meanwhile seasonally adjusted underlying net mortgage lending rose by £5.7bn compared with £5.1bn in April, £4.3bn in May 2005 and an average of £5.1bn over recent months.
In total there were 201,506 mortgage approvals in May, with a total value of £21.2bn.
The BBA says comparisons with April are distorted, as approvals data are related to the number of working days in a month and there were 21 working days in May and only 18 in April. But the number of approvals was still 8% higher than in May 2005.
The average approval for house purchase fell in May to £139,300, although it was still some 11% higher than a year earlier.
David Dooks, BBA director of statistics, says: “Although numbers of approvals are still well below the levels of early 2004, the record level of gross lending and stronger net lending in May shows mortgage market activity to be healthy.“
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