Bank of England interest rate hikes and reports of a slowing housing market have not affected mortgage lending, it seems.

Updated MBBG (Major British Banking Groups) figures from the British Bankers' Association this week show lending to individuals is still increasing.

Gross mortgage lending totalled £18.0 billion in June. This measure of new business was £2.4 billion higher than in May and 20% more than in June 2003. After seasonal adjustment, there was a rise in net lending of £6.4 billion, the strongest increase in the series.

Approval numbers in June were 4% stronger than May. There were 230,200 loans approved, with a total value of £18.9 billion. The number of loans approved for house purchase remained stable, though they represented a lower proportion (38%) of the total than in May. The average approval for house purchase again rose sharply, to £118,100.

David Dooks, BBA director of statistics, said: "The rise in net lending over the second quarter of the year was virtually the same as in the first, showing that with due regard to monthly fluctuations, the buoyant trend in mortgage lending has remained fairly stable over the first half of the year.”

“The composition of future demand is difficult to read; approval numbers show that remortgaging and equity withdrawal loans are running below last years comparative months, whereas loans for house purchase have been consistently higher, despite rising property prices."

"Junes credit card borrowing repeated Mays rise, as repayments rose in line with stronger spending, while other personal lending was slightly stronger than the modest growth seen in April and May."