According to UK lenders, the total number of mortgages granted to home buyers in June increased by 23% compared with May.
The Council of Mortgage Lenders (CML) has said that around 45,000 mortgages were approved for property purchases in June, falling just 6% below the number granted in June 2008.
The group has said these figures indicate that the mortgage market has stabilised, although it was still far from returning to the levels seen during the housing boom.
There was still mounting pressure on first-time buyers, as on average they were expected to put up a deposit of at least 25% of the value of the home.
The figures from CML revealed that the number of mortgages granted to home-buyers in June hit the highest levels seen since July 2008, as the housing market had already begun to feel the pinch, and amounted to £5.9billion.
CML economist Paul Samter. Said: "Low interest rates and realistic selling prices have helped generate a welcome increase in transactions. But there is some way to go before we reach normal levels of activity
"There are tentative signs that lending criteria are easing, but re-mortgaging demand is likely to remain subdued whilst interest rates stay at current levels."
The average loan taken out to purchase a home rose from £105,000 in March to £111,000 in June, reflecting the recent rise in house prices.
But the amount required as a deposit has seen little change, standing at 25% in March and 26% in June.
According to the CML, in June, first-time buyers were granted 17,200 loans, amounting to £1.9billion – up by 26% compared to the previous month. This figure was 7% down on the previous year, when on average first-time buyers were expected to put down a deposit amounting to 13% of the property value, compared to the 25% deposits seen in June.
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