May posted an increase in overall mortgage lending, according to the latest figures from the Council of Mortgage Lenders. Overall, this May mortgage borrowers obtained more than £10.5 bn for home purchases and properties. That is an increase of 10% in month on month comparison and more than 15% in comparison to the same month last year. Although at first glance this seems strong, some experts see this as a market which is less buoyant than it appears.

Due to stamp duty introduced in the middle of last year creating a slowdown in the UK housing market, these figures paint a picture which is slightly skewed.

The breakdown of mortgage lending paints a bit of a clearer picture. More than 58,000 loans were approved which is an increase of 12% over April and higher than April of last year by 10%.

Relative to last year, remortgage lending has remained strong. An increase of 12% in approvals took place in May compared with last year and an increase of 7% was posted as an increase in value. Remortgage deals continue to be sought after with lenders offering packages to help families save money and improve the household budget.

Paul Smee of UK Finance commented on the latest figures, saying: “The apparent strong growth in mortgage lending in May might flatter to deceive. The relative weakness in lending last May following the stamp duty changes makes comparisons misleading.”

Smee added: “The seasonally adjusted data shows a less buoyant lending picture, with home buying activity remaining relatively unchanged month on month and remortgage lending gradually decreasing each month since January.”