The three-month annualised and twelve-month growth rates were 0.7% and 0.5% respectively. Gross mortgage was £13.0 billion and repayments were £12.5 billion.
The number of loan approvals for house purchase was 53,710 in April, compared to the average of 53,729 over the previous six months. The number of approvals for remortgaging was 30,313 compared to the average of 28,323 over the previous six months. The number of approvals for other purposes was 12,580 compared to the average of 13,900 over the previous six months.
Ashley Brown, director of the independent mortgage broker Moneysprite, said:
"The rise in lending in April was not a quantum leap but it's still further proof that the property market is now on firmer ground and people feel more confident about making purchases. A bonanza of cheaper mortgage deals is certainly helping tempt buyers back to the market.
"It didn't seem that long ago that all the headlines were about the first lender to drop its five year fixed rate mortgage below 3%. Now there are a whole host of lenders offering five year fixed rates under 3%, and we recently saw five year deals crash through the 2.5% mark. The rise in first time buyer numbers, the heart beat of the property market, has been particularly encouraging.
"They have been frustratingly sitting on the side lines, unable to enjoy the cheaper deals being churned out by lenders, because they couldn't cover the deposits. Now we're seeing a lot more activity at the higher loan to value end of the market as lenders scrap around to gain market share. It doesn't mean the bad times are behind us, so roll on the good times.
"Cheap money from the Funding for Lending Scheme won't last forever, and rates could start going up just as quickly as they have dropped if lenders are faced with higher wholesale lending costs. There is clearly an appetite for mortgages, and lenders are open for business across the board, but this is a time for cautious optimism rather than reckless abandon."
Richard Sexton, director of e.surv chartered surveyors commented:
“The mortgage market is much stronger than it was six months ago. Lender confidence is more durable compared to the brittleness of the last few years, and that is helping more first-time buyers get a mortgage. House purchase lending is at its highest and most consistent since the financial crisis, and there were 14% more house purchase loans to high LTV borrowers compared to April last year. Rates are low, criteria have eased slightly, and there is a wider choice of high LTV mortgages.
“But the improvements are being stymied slightly by the unholy trinity of weak wage growth, rising costs of living, and meagre savings rates. And on the supply side, lenders will find it difficult to significantly increase the amounts they lend. Their hands are still tied by turbulent money markets and punitive regulatory and restructuring requirements that will leach away funds which could be used for new lending. It will still require a significant tour de force in the economy if the mortgage market is to fully regain its va-va-voom.”
Paul Hunt, managing director of Phoebus Software said:
“The small but significant rise in mortgage approvals in April is not momentous by any standards but there is a growing sense that the mortgage market is taking steps in the right direction. Lending is inching up on an annual and monthly basis which is really encouraging. Given the on-going troubles bubbling away in the Eurozone and the squalid financial climate in the UK, the fact that mortgage lenders have managed to increase lending is testament to the innovative and proactive approach they have taken.
"In spite of the lack of economic growth and amid growing roadblocks in the property market, the lending industry has found a way to sustainably and significantly boost activity in the property market. It is likely there will be further progression in the mortgage market at this rate, as activity grows thanks to the Funding for Lending scheme and Help to Buy which should kick-start the housing market from the bottom tier. ”
