Recent data from the Council of Mortgage Lenders shows that the number of remortgage loans advanced in May increased by 17 per cent by number and 20 per cent by value compared to the previous month.

There were 29,000 remortgage loans worth £3.6bn advanced in May, which represents an increase of 11 per cent by number and 9 per cent by value compared to May 2010.

However, the figures represent a decrease, of 5 per cent by number and 6 per cent by value, when compared to May 2010.

The majority of borrowers opted for fixed rate mortgages in May while 22 per cent chose tracker mortgages.

Director general of CML, Michael Coogan said that seasonal factors are likely to push up lending for house purchase over the coming months.

He added: " There is no evidence of any drastic changes on the horizon or any significant shifts in direction for the mortgage market. These stable conditions are expected to continue for the rest of the year."

The research by CML also revealed that lending to first-time buyers was vitually unchanged in May.