New data has revealed that mortgage approvals were up by 4.2 per cent in March, with as many as 66,614 new deals approved.
The news, which follows the publication of e.surv’s latest Mortgage Monitor, comes shortly after lenders raised concerns in January and February that UK mortgage lending was falling.
According to the new seasonally-adjusted figures, mortgage approvals were up by 4.2 per cent month-on-month in March, and up by 1.3 per cent year-on-year.
19.6 per cent of new loans approved last month went to homebuyers with small deposits, suggesting that the first-time buyer market remains buoyant.
However, a large chunk of new loans (34.5 per cent) also went to buyers with large deposits of 60 per cent or more, the data reveals.
Meanwhile, mid-market borrowers accounted for almost half (45.9 per cent) of approvals.
Richard Sexton, Director at e.surv, noted that many homebuyers were rushing to secure fixed-rate deals amid rumours that the Bank of England (BoE) will move to increase interest rates next month. He indicated that those looking to re-mortgage were taking a similar approach.
“As talk of a further base rate increase continues to gather momentum, we are seeing many borrowers fix their rate and protect themselves against future rises,” he said.
“This has contributed to the growth in the mortgage market compared to last month.”