Further evidence of a stable housing market emerged today as a closely-watched monthly survey found total mortgage lending hitting its highest level so far this year. The British Bankers Association revealed that gross mortgage lending in June totalled 16.5 bln stg, the highest total this year. Though the June figure was up on May's 14.3 bln, it was still 9 pct lower than that achieved in June 2004. Meanwhile, the BBA found that seasonally-adjusted net mortgage lending -- gross lending minus repayments -- rose by 4.6 bln stg, up on May's 4.5 bln but down on the 5.6 bln recorded a year ago. This improving monthly picture was further illustrated with the mortgage approvals numbers, which stood at 195,242 in June for a total value of 17.9 bln. The number of approvals was 5 pct higher than May, though 17 pct weaker than June last year. The average approval for a house purchase was 131,600. "Whilst growth in mortgage lending has slowed to an annual rate last seen in 2002, higher volumes of loan approvals in June mirror the stronger seasonal pattern, showing that there is stable underlying demand for loans," said David Dooks, the BBA's director of statistics. Elsewhere, the BBA found that lending on loans and overdrafts was virtually flat in seasonally-adjusted terms, adding that the last time the monthly increase was so small was in December 1994. Borrowing on credit cards, though, at 0.3 bln stg, was stronger than the 0.1 bln average over the previous six months. "If June's higher credit card lending was a reflection of consumer spending, then it was offset by very low demand for loans and overdrafts," said Dooks. "Consumers' ability to switch easily between credit options means that components fluctuate, as in June, but the overall picture is one of subdued unsecured lending," he added