The majority of lending activity in the UK is currently focused on the remortgage market, according to new figures.

Research from the Council of Mortgage Lenders (CML) found that despite the performance of the sector, gross lending fell by two per cent in May from the previous month to £25.5 billion.

The figure was also down by 19 per cent on the same period last year.

Michael Coogan, director-general of the CML, said: "The remortgage market remains on track to meet our forecast for growth this year, demonstrating the resilience of the market despite recent bad news.

He added that the market was still awaiting the "first signs of the Bank of England’s Special Liquidity Scheme indirectly helping to ease the current logjam".

Earlier this month, research by the CML found that the proportion of borrowers taking out fixed rate deals increased during April.

The study also found that the average first-time buyer also put down a deposit of 13 per cent during the month.

Source:http://www.earth.co.uk/News/