Mortgage lending rebounded in April with a rise in the number of loans approved for house purchase and an increase in the total amount lent to homeowners. 

Although the number of loans for house purchase remain well below levels seen this time last year, April's figure was nine per cent up on March in volume and 10 per cent up in value according to the Council of Mortgage Lenders (CML).  The 50,700 loans approved to buy a property was the highest monthly figure since last December. 

Gross lending (which includes re-mortgaging) increased by eight per cent compared to March.  Although gross lending for April is still five per cent down the same time last year, this is a significant improvement on March when the equivalent figure was 24 per cent lower and reverses two consecutive months of decline.
 
The disappearance of 100 per cent mortgages and the growing demands of mortgage lenders for higher deposits can be seen in the growing size of deposits put down by first time buyers.  The average person buying their first home now has a 13 per cent deposit, up from 10 per cent at the start of this year.

The CML also reports that the popularity of fixed rate mortgages is soaring as homeowners seek to protect themselves from the possibility of interest rate rises triggered by higher inflation.  The proportion of borrowers taking out fixed-rate products increased to 59 per cent in April, up from  54 per cent in March and the highest proportion since December last year.

CML director general, Michael Coogan commented: "There has been a resurgence of fixed-rate lending as borrowers are seeking certainty. This trend is likely to continue as the anticipation of future Bank base rate cuts has diminished."