The amount of money banks lent to customers for remortgages dropped to its lowest level since 2009 in May of 2015.
That`s according to new figures indicating that lending has become more stable over the last year.
The Council of Mortgage Lenders says gross lending reached £15.9 billion during May, climbing slightly from the £15.8 billion lent in April, but down compared to the £16.8 billion loaned in the same month last year.
Data from the industry body revealed that remortgage activity dropped by ten per cent in May, in terms of the amount borrowed and the volume of loans, compared to the previous month.
Furthermore, remortgaging activity was more subdued in the fifth month of 2015 versus the same period in 2014, falling to levels not seen since 2009 - a time when the market was dealing with the aftermath of the global financial crisis.
The statistics demonstrate that lending to first time buyers declined by 13 per cent to £3.4 billion year on year, but actually gained three per cent on the figure loaned out in April.
Mortgages agreed for those looking to move home rather than get a foot on the property ladder increased by two per cent compared to the previous month, but followed a similar trend to first time buyer lending as the £5 billion total was 12 percent lower than May 2014.
Lending for remortgages added up to a sum of £3.7 billion, marking a ten per cent downturn compared to April 2015 and a three per cent drop versus May 2014.
Conversely, the buy to let mortgage market continues to flourish, with statistics revealing that gross lending surged by 12 per cent in terms of the number of loans issued in May and increased 19 per cent in relation to the value of approved mortgages.
Paul Smee, director general of the industry body, believes the figures outlined in the report indicate that the mortgage market could be on its way to emerging from its slumber after a lacklustre first quarter.
He explained that activity in the sector has been broadly down over the last 12 months, but that the Council of Mortgage Lenders predicts that this will increase over the summer due to low interest rates and competitive lending environment, which makes borrowing conditions relatively favourable.
However, Mr Smee adds that it would be wrong to ignore that affordability restraints work in a contrary direction. He warned that prices are increasing, despite growth in earnings remaining sluggish.