Gross mortgage lending in June was down on May’s total and the figure from June 2018, according to the latest figures published by UK Finance.

The trade body revealed that £21.9bn was lent in June, dropping 4 per cent when compared to June 2018 and 1.7 per cent on May.

However, despite the drop, the number of mortgages approved by main high street banks (Barclays, Lloyds, HSBC, RBS, Santander, TSB and Virgin Money) in June was 2.9 per cent higher than during the same period in 2018. However, they were still down 3.3 per cent on May.

The month saw 48,539 mortgages completed for home purchase by these lenders – up from 47,175 in June last year, but down from 49,683 in May this year.

Furthermore, remortgaging approvals 1.4 per cent lower and approvals for other secured borrowing were 5.3 per cent lower than the same month a year earlier.

Commenting on the figures, Landbay CEO John Goodall said: “Considering the swell of political uncertainty over the past few months, it’s hardly a surprise to see a further slowdown in mortgage lending. Would-be buyers will be forgiven for pressing pause on any decision without more clarity over the UK’s future direction.

“However, with Boris now in the hotseat, and promising Brexit by October, many may well consider making their property move between now and then to avoid any potential no-deal disruption. The truth is that we are in a buyers-market amid subdued house prices, decent wage growth and lenders with a genuine appetite to lend. Add to the mix low-interest rate conditions alongside stable inflation and it’s not hard to see why things could be looking up in the near term.”

Bluestone Mortgages director of sales Steve Seal added that many hopeful buyers are at risk of being rejected by high street lenders, due to a large proportion of consumers carrying debt. To combat this, Seal highlighted the “host of alternative options out there” for those with more complex finances, with advisers that can direct those who fall outside mainstream criteria.

Taking the current political landscape into account, Trussle mortgage expert Dilpreet Bhagrath stated: “With the UK’s political uncertainty ramping up due to the Conservative leadership race, it’s not surprising to see that mortgage lending has fallen. It’s possible that many would-be buyers are adopting a ‘wait and see’ approach to see how Brexit might affect the market.

“With Boris Johnson moving into 10 Downing Street today, it will be interesting to see whether people choose to stay put or move ahead of a potential no-deal Brexit later this year.

“For those who do want to protect themselves against Brexit uncertainty it may be worth considering a fixed-rate deal. Knowing how much repayments will cost each month will give some piece of mind. However, it's always important to consider any personal and future circumstances when securing a mortgage, and seek advice to ensure you're aware of the options."

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