Figures from the CML estimate a 30% rise in mortgage lending over the year as homebuyers seek to complete before the April deadline.

The Council of Mortgage Lenders (CML) has published figures showing mortgage lending is 29.6% higher increasing from £13.5 billion a year ago to £17.6 billion in February.

CML’s economist, Mohammad Jamei said mortgage lending is underpinned by wage growth and lower unemployment as well as the government Help to Buy schemes and competitive mortgage deals.

This has helped first time buyers, remortgage buyers, home movers and buy-to-let landlords secure competitive interest rates reducing the cost of their mortgages.

Remortgage activity is strong

Since the second half of 2015, remortgage buyers have been active securing fixed term mortgage deals as interest rates have reduced to record lows.

The CML data shows the contribution to annual growth for January is 11% for remortgage lending and 6% for house purchases and remortgages have remained ahead since December 2014.

There was also a contribution from buy-to-let landlords to beat the extra 3% in stamp duty from April 2016. A total of 9,500 mortgages were advanced with a 40% increase in lending to £1.4 billion for the year to January.

However, economist Mohammad Jamei thinks it is unlikely there will be a significant acceleration in lending.

There should be a fall in lending activity after April as mortgage affordability pressures continue and the lack of properties on the market.

The lending for February 2016 of £17.6 billion is 5% lower than January although it is the highest for this month since 2008 when gross lending was £24.1 billion.

Housing market recovery to continue

According to the CML housing market activity will continue to recover although there is a limited upside potential in the near term.

Housing demand is being supported by real wage growth, mortgage deals and the government such as the London Help to Buy scheme.

Even so, transactions in January were £1.2 billion which remains 25% lower than pre-financial crisis levels of about £1.6 billion.

The lack of properties has contributed to the recent rise in house prices although this is easing with an increase in new-build homes for the third month in a row reported by the Royal Institution of Chartered Surveyors.

A lower number of family homes on the market could occur where equity release buyers avoid downsizing by agreeing a lifetime mortgage to access wealth from their property.

In 2015 the number of new-build properties in England was over 150,000 although this remains far short of what is required at 250,000 new homes a year.

What are your next steps?

Talk to our London City Mortgage brokers for advice if you remortgage your existing home and want the best mortgage deal or release capital, buying your first home, moving home or are a buy-to-let investor.

For older homeowners releasing equity from your property, our LCM mortgage advisers can recommend the lifetime mortgage, accessing wealth to improve your quality of life or even pay for care at home.

Start with a free mortgage quote or call us and we can take your details. Learn more by using the equity release mortgage calculator, mortgage cost calculators, and property value tracker chart.

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