Mortgage lending increase in March

People looking for cheap mortgages will be pleased to learn that gross mortgage lending increased by 21 per cent in March.

Figures released by the Council of Mortgage Lenders CML estimated that around £11.3 billion was lent to homeowners last month, a significant increase from £9.3 billion in February.

However, the increase has not done a great deal to reverse the effects of February's drop, leading home lending in the first quarter of 2011 to decline by 11 per cent on figures from the fourth quarter of 2010.

"Lenders expect mortgage credit availability to improve this quarter, and this should help to underpin house purchase activity albeit at pretty low levels," CML chief economist Bob Pannell explained to those seeking cheap mortgages.

He added that the remortgage market remains strong, likely to be caused by the expectation of a rise in the base rate at some point this year.

The National Association of Estate Agents also reported an increase in the number of people enquiring about properties.

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2011-04-20 13:25:50 © Moneyextra.com