The demand for mortgages rose from April to June this year, according to figures from the Bank of England.
It is the strongest demand for mortgages since the end of 2013, and is expected by experts to hold strong over the summer.
Between February and May, 193,400 mortgages were issued, higher than the 182,700 which were issued in the three months prior to that.
Mortgage rates are falling to record lows, and combined with the Help to Buy scheme, and an increase in mortgage availability, the demand for mortgages has been rising, helping the housing industry recover.
The Post Office has recently offered the lowest two-year mortgage rate ever offered, at 1.05 per cent.
“It increasingly looks like the housing market is on the up after being in the doldrums during most of 2014 and the start of 2015,” said Howard Archer, of IHS Global Insight. “We expect housing market activity to pick up further during the second half of 2015, underpinning a modest firming in house prices.”
Despite a strong second quarter however, building societies and banks predict that this year will be quite similar to last year, in terms of gross mortgage lending. Also, in spite of a rise in the demand for mortgages, the number of mortgage approvals is noticeably lower than it was in the years before the financial crisis.
