Mortgage lending and new advances have increased in the second quarter of the year, according to new data from the Financial Services Authority (FSA).
The FSA said the total value of outstanding loans at the end of quarter two was £1.22bn, an increase of 0.1 per cent on the first three months of 2012.
New advances in the quarter amounted to £37bn, 1 per cent higher than in quarter one, but the same as last year, it said.
The overall average interest rate on new advances rose from 3.5 per cent in Q1 to 3.78 per cent while new commitments totalled £40bn, a 7 per cent rise from the first quarter.
Lending for house purchases accounted for 62 per cent of new advances, up on both last quarter and on Q2 2011, and for 65 per cent of commitments, the highest proportion yet recorded, the FSA said.
As a consequence, the proportion of advances for remortgages fell back to 31 per cent.
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