March saw 45% lift in purchase loans

House purchase loans rose by 45% year-on-year in March, marking the ninth month in a row of annual growth.

Data from the Council of Mortgage Lenders shows there were 45,000 loans for house purchase in March, worth £6.3bn. This was an increase of 25% in volume compared with February.

But the remortgage market was down 29% year-on-year, the 23rd consecutive month showing an annual fall. There were 28,000 remortgage loans worth £3.5bn and up 23% in volume.

Michael Coogan, directorgeneral of the CML, says: “There is some momentum in house purchase lending, but the new government will need to focus on funding and the issues arising from the repay-ment of the emergency support provided in the financial crisis.”