March sees 25% increase in home loans

There were around 45,000 loans for house purchase advanced in March this year, up 25% on the previous month, according to the Council of Mortgage Lenders (CML).

Loans to first-time buyers increased by 27% in the same period, while loans to home movers increased by 11%.

The number of remortgages increased by 23%, although the CML said that the overall remortgage numbers are still weak.

In the year to the end of March, lending for house purchase increased by 45%. This was the ninth consecutive month of annual increases.

Michael Coogan, director general of the CML, said: "Today`s figures indicate there is currently some momentum to house purchase lending, but for the sake of the future health of the housing and mortgage markets, the new government will need to focus on the critical issue of funding and how to address the issues arising from the repayment of the emergency support provided during the financial crisis."

Source: www.ThinkMoney.com