Approvals were also stronger at £1,677 million compared to £1,389 million in February - a 21% increase.
Commenting on the lending figures, Adrian Coles, BSA director-general, said: "Lending activity appears to have gained some momentum following a sluggish start to the year, and the relatively strong approval figures bode well for coming months. However, the mortgage market will remain fragile as there is uncertainty in relation to employment, interest rates, house price inflation, mortgage availability and, conceivably even after the election, the political outlook."
The results showed:
• Mutuals' gross lending amounted to £1,597 million in March 2010 compared to £1,174 million in February.
• Net lending by mutuals in March 2010 was -£764 million compared to -£863 million in February.
• Approvals by mutuals in March 2010 were £1,677 million compared to £1,389 million in February.
