Mortgage boom

The mortgage lending boom continues apace in defiance of cautious general economic forecasts with loan approvals reaching record levels last month.

The British Bankers Association yesterday reported that gross mortgage lending by its members for March increased by a record £4.05bn to £389.4bn - the highest ever single monthly rise.

Total advances, which exclude redemptions and repayments, were £10.9bn, 19% higher than February's figure and 42% up on March last year.

Loan approvals also jumped with 216,900 loans worth £13.68bn given the go-ahead - 12% higher by number and 23% greater by value on figures for March last year.

Equity release also continues to grow with an estimated 66,800 such mortgages worth £1.3bn approved - the highest monthly figure yet and 29% higher than March 2001.

"It is already clear that the mortgage market is operating at a higher level this year than the same time last year," BBA chief executive Ian Mullen said.

"Additionally, this picture should continue in the coming months."