CML: Gross mortgage lending up 21% in March

Gross mortgage lending in March was an estimated £11.3bn, a 21% rise from £9.3bn in February, according to CML data.

Despite the 21% increase in March, the figure was still down from the £11.5bn in March 2010.

Overall gross lending for Q1 2010 was £30.1bn, an 11% decline from Q4 2010 (£33.9bn).

CML chief economist Bob Pannell said: “The housing market has emerged hesitantly from hibernation. Household finances are under a lot of pressure, and as a result demand for house purchase loans fell in the first three months of 2011.

“Lenders expect mortgage credit availability to improve this quarter, and this should help to underpin house purchase activity albeit at pretty low levels.”

Although lending remains weak overall, stronger remortgage activity has continued into the early months of 2011, said the CML.

“Remortgage demand, meanwhile, continues to firm, presumably linked to expectations of higher base rates. Remortgage approvals in February were the highest for more than two years. Stronger remortgage activity looks set to continue propping up overall lending.”