The three month annualised growth rate fell 0.3% to 0.3% whilst the 12 month growth rate was unchanged at 0.8%.
Total lending to individuals rose by £0.3bn in June compared to the previous six-month average increase of £1.3bn while the 12 month growth rate was unchanged at 1.0%.
Meanwhile In the first half of 2012 gross mortgage lending by building societies and other mutuals was £14.1 bn, up 38% compared to the £10.2bn in the same period in 2011.
Mutual lending rose 28% to £2.7bn in June 2012 up from £2.1bn June 2011.
Net lending by mutuals was £2.7bn in the first six months of 2012 and £0.7bn in June 2012.
Mortgage approvals by mutuals were up 45% in the first six months of the year compared to the same period in 2011. In June approvals were up by 35% compared to the same month last year and were 20% higher than the average over the previous six months.
Paul Broadhead, head of mortgage policy at the Building Societies Association, said: Lending by mutuals looks likely to continue to be strong in coming months. Growth in lending by banks over the past six months has been relatively weak while the economy remains in recession. In contrast, mutuals have demonstrated their commitment to lend, and are currently offering some of the best rates available in the market."
Brian Murphy, head of lending at Mortgage Advice Bureau, said: “Mortgage lending by mutuals has been the driving force behind much of the growth in 2012. We’ve been undertaking significant levels of business with the mutual market this year as they remain committed to lending and have some of the most competitive rates in the market.
“MAB’s National Mortgage Index found application levels have fluctuated in the first half of the year, but while they are still 6.9% higher than at the same point in 2011 gross mortgage lending by mutuals is 38% higher, which is testament to their competitive pricing and innovative products."
But Research house Capital Economics said: "Even allowing for the potentially negative impact of the Jubilee Holiday and the bad weather, June’s mortgage lending data were undeniably weak. Unfortunately, the poor economic backdrop argues that a recovery still is a distant prospect."
