June mortgage figures shows housing market still robust

Mortgage lending growth in June increased, suggesting that recent interest rates rises have not cooled the housing market.

Approvals for mortgages also held steady in June.

A statement from the Bank of England said lending secured on homes rose by £9.55 billion in June, compared to £8.75 billion in May.

Mortgage approvals stayed at 114,000 in June. Approval figures are one of the key indicators for the housing market.

Despite the increase in mortgage lending growth, many experts think the Monetary Policy Committee will keep interest rates at 5.75%.

David Page, economist at Investec, said: "It doesn’t change the outlook for this week’s interest rate decision, but if we don’t see a slowdown in the next few months it will add to the argument for rates rising to 6%."

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