Mortgage Application

Mortgage lending rose to its highest level for the month of June in eight years, according to the Council for Mortgage Lenders (CML).

The CML said home buyers borrowed £20.6 billion in June ahead of the EU referendum - 16% more than in May and 3% higher than in June 2015.

Analysts had suggested that buyers would be put-off by uncertainty surrounding the outcome of the referendum, and would instead delay their decisions. But the CML's figures oppose that idea.

HMRC figures show that there was a 4.9% rise in number of homes sold in June, and the larger amount of money lent to borrowers is reflective of rising house prices.

And now that the UK has voted to leave the European Union, the CML expects activity in the market to slow down considerably over the coming months.

Senior economist Mohammed Jamei said: "Over the next six months, activity is likely to soften modestly, while lending will be driven more by remortgaging and less by house purchases."