Brokers have welcomed latest figures showing that mortgage lending picked up in May, and predict a strong second half to 2015.
Gross mortgage lending rose 2% month-on month to £16.2 billion, according to new figures from the CML, although it was down 3% on the £16.8 billion of lending in May 2014.
CML economist Mohammad Jamei said a modest recovery is on the way. "The economic environment should support increased activity in the near term, coupled with low mortgage rates."
Jonathan Harris, director of mortgage broker Anderson Harris, predicted a gentle recovery in the wake of the recent General Election, as lenders offer rock-bottom mortgage rates to entice borrowers.
"These low rates are likely to continue into the autumn and once the traditional summer lull is out of the way, we could see a real pick-up in activity."
The main problem is lack of housing stock, which will continue to support prices, Harris said. "There is little incentive to sell when there is a lack of choice as to what to buy, while tougher affordability criteria as a result of the Mortgage Market Review (MMR) may also make it harder for borrowers to get the mortgage they need."
Jeremy Duncombe, director, Legal & General Mortgage Club, said: "We expect lending to pick up throughout the remainder of the year as those who deferred selling their home return to the market.
"Demand is also likely to increase as a result of a combination of record low interest rates, low inflation and a rise in wages."
Duncombe also expected an increase in remortgaging as homeowners look to take advantage of low rates to effectively give themselves a pay rise.
"At Legal & General, we have our own campaign to support brokers catering to those wishing to remortgage, however, more needs to be done across the sector so that more people can take advantage of favourable rates before it's too late."
Richard Sexton, director of e.surv chartered surveyors, said the lending recovery was "remarkably resilient" given the MMR and electoral uncertainty.
"That stability is encouraging - signalling a potential sustainable long-term trend, rather than the volatile days of recent years."
He said the proportion of lending to borrowers with smaller deposits is holding steady, as banks continue to support first-time buyers.
"Wage rises are starting to look healthier, while the cost of living remains low, meaning household finances are starting to finally put on some muscle.
"Lenders are optimistic that the summer will see the market stretch its legs and get into its stride."
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