According to the Building Societies Association, gross lending by mutuals totaled £1.7 billion in March 2011. This is up 8% compared to £1.6 billion in March last year, and compares to £1.5 billion of lending in February this year.
Commenting on the mortgage figures, Adrian Coles, director-general of the BSA, said: "There was a significant rise in the value of mortgages approved by mutuals in March. Indeed, across the first quarter of 2011 mortgage approvals by mutuals were 28% greater than in the same period a year earlier.
"However, these are increases from very low levels, and compared to previous times activity in the mortgage market remains subdued. This is largely because economic uncertainty continues to affect confidence in the housing market."
