Lending levels increased from £16.1 billion in March, and was much higher than the £11.6 billion recorded last April. However, the value of loans for house purchase dropped to £8.8 billion (52 per cent of gross advances) from £9 billion in March (56 per cent). The difference was made up through remortgaging, which grew to a record £6.9 billion (41 per cent) of advances.
Despite some recent claims, affordability for first-time buyers remained at a similar level to March, with advances averaging 79 per cent of the property’s value.
Michael Coogan, director general of the CML, said: "Mortgage and housing markets have been more buoyant than expected this spring but we expect them to slow later in the year, particularly if there is a modest rise in interest rates in the coming months. For the vast majority of borrowers, mortgages will remain affordable even if mortgage costs rise.
"Remortgaging continues to be very strong, and may also have been affected in recent months by expectations that interest rates will rise. Borrowers will no doubt continue to take opportunities to lock into attractively priced deals ahead of expected interest rate increases."
