The number of mortgage approvals last month increased by over 15 per cent according to figures from the British Bankers’ Association (BBA).

The data by the BBA suggested that the mortgage market could be recovering after figures found that the number of approved home loans soared by 15.8 per cent - £2.3 billion, in May, after the industry witnessed months of decline in the market.

However, despite the steady increase in the number of mortgages approved bringing the market back onto the same level as seen in 2008, the overall lending remains at record lows, said David Dooks, statistics director of the BBA.

The figures were the smallest monthly increase since early 2001 and showed to be below the average of £3.2 billion during the previous six months.

Dooks said: "Steady monthly increases since last November have seen the number of loans approved for house purchase recover to levels seen in early 2008, although gross and net mortgage lending show a subdued wider mortgage picture."

"However, unlike much of the mortgage market, the high street banks are still seeing lending growth, and improved mortgage availability is reflected in higher average loan approval values," he added.