LONDON (AFX) - Gross lending rose to 11.3 bln stg in March from 9.3 bln the previous month and 10.8 bln a year earlier, according the the latest monthly figures from the CML survey of Mortgage Lenders.
The value of loans for house purchases rose to 7.2 bln stg from 5.3 bln stg in February and accounted for 64 pct of all new lending, while figures for remortgaging fell to 3.3 bln stg in March from February 3.4 bln stg.
Average new mortgage rates fell in March to 5.82 pct, reflecting the fierce nature of competition within the mortgage market at present, CML said.
The average new variable rate was 5.72 pct and the average new fixed rate 6.02 pct. The proportion of new loans taken out on a variable rate basis was 67 pct compared with 70 pct in February. CML survey showed that loans for house purchases totalled 99,000 in March compared to 74,000 in February. It added that 43 pct of these were made to first-time buyers, down from 44 pct in February, CML said.
Commenting on the figures, CML Director General Michael Coogan, said: "A seasonal increase in housing market activity is to be expected during Spring. So, while the 22 pct rise in mortgage lending in March is strong, it is uncommon."
He added: "Mortgage rates are now at their lowest level since the end of 1999 and, with April's interest rate cut still to feed through, the competitive mortgage market is set to yield further benefits for customers during Spring."