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The number of mortgages lent to home buyers in April rose by 16 per cent compared to March.  And the total amount lent was up by 19 per cent.

According to the Council of Mortgage Lenders (CML), almost 36,000 buyers obtained a mortgage in April against 31,000 in March and they borrowed £500 million more than the previous month.  Even so, the number of loans for house purchase is still 28 per cent lower than for the same month last year.
 
More and more borrowers are opting to fix their mortgage payments since as home owners conclude that rates are unlikely to fall further and could rise as the economy recovers.  Over two thirds (69 per cent) of buyers in April took out a fixed rate mortgage at an average rate of 4.83 per cent.

CML head of research, Bob Pannell said: "With the interest rate cycle now at its floor, an increasing proportion of borrowers are taking out fixed rates, including for longer term periods of five to 0 years. With expectations for rates to remain low in the near future, shorter term fixed-rate deals are less appealing than attractively priced variable rate deals.  There are tentative signs of house purchase lending stabilising, but we need to see considerably higher transaction levels to underpin house prices."