The number of loans made for house purchases rose slightly in the UK in May as low interest rates continued, lenders have said.
About 42,000 home loans were granted in May, up 2% on the previous month and 15% higher than May 2009, the Council of Mortgage Lenders (CML) said.
Mortgage interest payments accounted for the lowest proportion of home movers’ income for 35 years, it added.
Lending for house purchases has risen for 11 consecutive months.
With the Bank rate at record lows, the environment for low rates has meant that homeowners’ mortgage payments have also proved to be low.
For those moving home, just 9.5% of average income was spent on mortgage interest payments in May – the lowest since comparative data began 35 years ago.
There were 27,100 loans given to those moving home in May. This was up 2% on the previous month, and 19% higher than the same month a year ago.
With many people staying on cheaper standard variable rates, the number of people remortgaging in May was still 14% lower than in May 2009. However, the 26,000 loans granted was 6% higher than in April.
