Following last week's release of MBBG (Major British Banking Groups) net lending figures for May, further information now available from the BBA (British Bankers' Association) shows that gross lending to individuals in May - at £18.234 billion - was a record. And 18% higher than April's total of £15.500 billion, 27% higher than the £14.339 billion seen in May 2005.

Seasonally adjusted net mortgage lending rose by £5.731 billion, compared with £5.065 billion in April. The strong increase in May was much higher than the average of +£5.140 billion over the previous six months whilst the annual growth rate is now around 13%.

Compared to the same month a year earlier, May's loan approvals for house purchase were 20% higher by number, 33% higher by value. At 40% of all approvals, these were at their highest share since July 2002. Remortgaging approvals were 8% higher by number and 28% higher by value; however approvals for equity withdrawal were 7% lower by number and 1% lower by value.

There were 201,506 mortgage approvals (for all purposes) in May, with a total value of £21.2 billion. Comparisons with April are distorted however, 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. That said, the number of approvals was still 8% higher than in May 2005. Meanwhile, the average approval for house purchase fell in May to £139,300, though still some 11% higher than a year earlier.

Elsewhere, new borrowing on credit cards totalled £7.682 billion in May. This was 16% higher than the previous month, but repayments outstripped spending and after seasonal adjustment, net lending fell by £251 million, having been flat on average in recent months.

New lending on personal loans and overdrafts in May was stronger than of late (overdrafts rising as April's end-month payments went through in May) and after seasonal adjustment, net lending showed a rise by £699 million, compared with a recent monthly average of +£294 million.

The BBA's director of statistics David Dooks said: "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."