The British Bankers Association (BBA) has stated that the number of house purchases in May was very similar to the underlying trend a year ago.
Unsecured borrowing is growing at an annual rate of 5%. This is its highest rate since autumn 2010, reflecting strong consumer confidence, the BBA said.
Meanwhile, net borrowing by businesses has been positive in three of the last five months.
Richard Woolhouse, chief economist at the BBA, said: “Household borrowing remains robust and this is indicative of the wider recovery we’re seeing in the economy.
“The increase in mortgage approvals this month is consistent with the trend we’ve seen since the start of the year. The numbers show that the property market remains buoyant after the general election. Fierce competition between lenders means that there are some great mortgage deals available from the high street banks.
“Personal borrowing by British families also seems to be strong – the uptake of personal loans and credit card borrowing is further proof of consumers’ confidence.”
Adrian Gill, director of Your Move and Reeds Rains estate agents, added: “On an annual basis, mortgage lending in May is nothing to write home about. But after the winter hurdles it’s clear we’re pulling away into the straight.
“Just like the fable of the hare and the tortoise, there’s nothing wrong with slow and steady. House prices set a new record in May, despite growth trotting along at a more measured pace. But this looks to be a temporary breather.
“Since shrugging off the handicap of the General Election, buyer confidence is in much better form. Already in June agreed sales are galloping along, and the going is looking good all across the country, as the odds favour buyers and gee up demand.”