Estimated gross mortgage lending for the total market in May was £22.2bn, 8.8% higher than the figures reported in May 2017, according to the latest statistics from UK Finance.

The data further revealed that the number of mortgage approvals by the main high-street banks in May also experienced growth, increasing by 3% compared to the same month a year earlier.

Credit card spending was also 2.3% higher in May than in 2017, with outstanding levels of card borrowing having grown by 5.7% over the year. The total of 193 million credit card transactions in May was significantly higher than the 2017 average of 181 million, reflecting increased retail sales.

However, despite the growth seen across other areas, outstanding overdraft borrowing was 3.9% lower compared to the same period last year.

Personal deposits grew by 1.6% in the last 12 months, although this was a lower annual rate than seen historically, while deposits held in instant access accounts were 4.4% higher than a year earlier.

Commenting on the findings, UK Finance personal finance managing director Eric Leenders said: “May’s increase in mortgage approvals was driven by strong growth in remortgaging, as a large number of fixed-term mortgages came to an end and homeowners took advantage of a competitive market to shop around for attractive deals. Increased efforts by lenders to contact their customers before their current mortgage deal expires have also contributed to this rise.

“There was modest growth in card spending, reflecting a boost to retail sales amid the good weather over recent bank holidays and the Royal Wedding celebrations.

“However, the overall economic picture remains mixed, as household incomes continue to be squeezed. This may explain the growth of deposits held in instant access accounts, with consumers increasingly choosing to keep their money close to hand.”

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