The number of mortgages given to homebuyers in the UK rose by 23% in June compared to May, say lenders.

The Council of Mortgage Lenders (CML) reported that some 45,000 mortgages were granted in June, just 6% lower than the same month in 2008.

While the group claimed that the mortgage market had stabilised, it had to admit that first time buyers were still struggling, with LTVs of around 25% available only.

CML Economist Paul Samter: "Low interest rates and realistic selling prices have helped generate a welcome increase in transactions. But there is some way to go before we reach normal levels of activity.

"There are tentative signs that lending criteria are easing, but remortgaging demand is likely to remain subdued whilst interest rates stay at current levels."

This news follows on from positive news on house prices in June.