The seasonal pick-up in mortgage lending during June could see volumes maintained at higher levels for the rest of the summer, according to the Council of Mortgage Lenders (CML).

New data from the organisation showed that gross lending reached an estimated £12.3 billion over the course of the month - up 17 per cent since May.

While this still marks a 48 per cent decline from the £23.8 billion issued in June 2008, the rise could pave the way for increased activity in the coming months.

CML economist Paul Samter said: "The pick-up in June's lending largely reflects seasonal factors and these may well support lending volumes at moderately higher levels over the rest of the summer."

However, he added that any "significant and underlying improvement"is likely to be restricted by the reduced number of active lenders and limited consumer demand.

CML figures revealed earlier this year that buy-to-let lending fell for the sixth successive quarter over the first three months of 2009, accounting for just six per cent of all gross mortgage lending.

Written by John WeeksADNFCR-2002-ID-19275864-ADNFCR

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