High street banks advanced £12.2bn worth of mortgages in April, the highest monthly figure in six years and up by more than half on April 2013's figure, according to data from the
However, the number of home loans approved for house purchases and remortgaging both fell for the third month running.
The BBA said while mortgage assistance schemes helped first-time buyers and housing chains generally through the late months of last year as housing market activity increased, the number of people taking out home loans had moderated since the start of the year.
New rules on mortgage lending came into force in April, although some lenders adopted them earlier, and experts said this may have had an impact on approval numbers.
A total of 71,238 mortgages were approved, down from 74,853 in March and below the previous six-month average of 76,795. Of these, 42,173 were for house purchases, against a six-month average of 45,720. Remortgage approvals totalled 21,129, compared with a six-month average of 22,282 and the rest were other secured loans.
Rising house prices and banks' increasing willingness to lend at higher loan-to-value ratios meant the average mortgage for house purchase increased to £164,500 from a previous six-month average of £ 159,000, while the average remortgage was up from £151,000 to £156,100.
"The amount of borrowing is still well below the levels we were seeing before the financial crisis."
"The introduction of the mortgage market review may be having an effect. While it's still early days, with many lenders introducing the new rules weeks ahead of the official launch, its impact may already be starting to be felt," he said.
The figures came as
The governor of the Bank of
Experts suggest at least 250,000 new homes are needed each year to limit price inflation, which on some measures is now running at above 10%, and both Labour and the Liberal Democrats have set targets of 200,000 and more.
In a survey of more than 100 housebuilders, just 6% said they believed that many new homes could be built consistently each year, while 76% said only 180,000 or fewer was achievable.
Those questioned said the first part of the Help to Buy scheme, which offers an interest-free loan on newbuild homes, was supporting housebuilding figures.
Three-quarters said the extension of the scheme to 2020 would increase the number of homes built.
Knight Frank said in the
"Also, finding a suitable unwinding mechanism for the equity loan will be paramount in the coming years if a 'cliff edge' market distortion is to be avoided in six years' time."
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