By Jonathan Davies

The UK's housing marketing in the UK are "beginning to hot up again", according to the British Bankers' Association (BBA).

The BBA said mortgage approvals rose 8% to more than 44,488 in the year to June. That was 5,000 more than the average of the previous six months.

Gross lending is now up to £11.5 billion.

The BBA's figures are adjusted to take into account changes to mortgage lending rules which caused a slowdown in the market last year.

"This rise is partly fuelled by record-low mortgage deals. The average two-year fixed rate mortgage has fallen from 3.67% a year ago to 2.75% today, and borrowers are clearly taking advantage of these low rates to secure lower monthly repayments," said Charlotte Nelson, of financial information service Moneyfacts.

"However, with Mark Carney's announcement that base rate is likely to rise in the near future, these low rates will not be around for long."