Lenders have said that they have seen a rise in the number of home loans in May, as low interest rates continue to attract home movers.

The amount that is being spent repaying home loans is at the lowest level in 35 years and home movers continue to benefit the most from the reduced interest levels, according to the Council of Mortgage Lenders (CML).

There were around 42,000 home loans approved in May, which is 15% higher than the same period last year and is up 2% on April.

Interest payments in May only accounted for 9.5% of the average household income according to the report but the CML predicts that mortgage borrowing will start to slow down throughout the rest of 2010.

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