The Council of Mortgage Lenders has warned that the outlook for lend- ing levels in the next few months has worsened.
The CML issued the warning in its latest gross lending report, which shows gross lending increased by 5% to an estimated £26.3bn in March from £25bn in February.
But from a year-on-year perspective, the report says total gross lending in March 2008 fell by 17% from £31.7bn in the same period last year.
Estimated gross lending for Q1 2008 was £77.2bn, down 8% from £83.9bn in Q1 2007.
In the report, Coogan says prospective lending levels and mortgage approvals are set to decline.
He adds that borrowers should contact their lenders immediately if they face problems.
Coogan says: “As mortgage costs rise it is important for borrowers with potential financial difficulties to speak to their lenders as soon as possible, preferably before they miss payments.”