In the three months to early March lenders reported a slight increase in the overall availability of secured credit the Bank of England’s Credit Conditions Survey revealed.

And there was a “significant” increase in the availability of credit at loan-to-values over 75% with a greater willingness to lend above 90% LTV, attributed to being part of the Help to Buy scheme.

This momentum is expected to increase over the next three months driven by a desire to increase market share.

Demand for secured lending to buy a home followed the same upward trajectory but remortgaging was reported to have taken a slight dip in quarter one.

But this is expected to increase in the coming three months as house prices continue to rise.

Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “With demand for mortgages increasing significantly, lenders are preparing to make more products available to borrowers in the second quarter of the year.”

Harris said that while lenders are keen to do considerably more lending this year the Mortgage Market Review would ensure reckless lending remained a thing of the past.

Respondents to the survey said they expected a slight further narrowing in mortgage spreads over the next three months.

But some lenders did indicate that margins were currently compressed which might limit the scope for further falls in spreads.

Harris added: “With five-year fixed rates still available around the 3% mark and base rate not going to stay at 0.5% for ever, it is as good a time as any to remortgage.”