The number of mortgages approved by the main high street banks in March 2019 was 9.1 per cent higher than March 2018, according to UK Finance. Remortgaging was up by over 11%, in terms of approvals.

The trade body’s figures look very positive for the mortgage market, but the headline number masks an important fact. Last March was a particularly slow month with low levels of approvals, which makes today’s jump look more impressive than it really is.

The mortgage market can be volatile month to month, so comparing any isolated month with the same one a year earlier isn’t always indicative of the underlying trend.

Value of lending down

Plus, the total amount lent in March – gross mortgage lending – was £20bn. It sounds like a lot, but in fact it’s lower than the amount lent in March 2018.

So what’s going on?

Keith Haggart, managing director of mortgage provider Responsible Lending, explained: “Mortgage approvals can move in waves as market trends and sentiment suck customers in and these peaks produce just as many troughs. That’s what was seen in early 2018, and that is what has produced this rather amazing year-on-year growth statistic of 9.1%.

“A large jump in remortgages follows the same pattern, as several strong months for remortgaging early last year gave way to a particular slow month for overall approvals.”

“The fact that gross mortgage lending is down slightly is a concern,” he goes on to explain.

“Ultimately it means home purchasers and owners aren’t throwing as much money into the property market. That doesn’t bode well for the transactions crisis, with historically low volumes of properties changing hands, which doesn’t look like it will right itself in any great rush.”

Good times ahead?

Andrew Montlake, director of mortgage broker, Coreco, is more bullish. “There has been a marked improvement in the property market in the past month or so,” he said.

“Something has changed, and this week in particular has seen a huge surge in mortgage enquiries.

“There’s always a surge in activity levels during the Spring but this year it has been accentuated by the pent-up demand caused by Brexit.

“Lender competition has never been as fierce as it is now and borrowers are reaping the rewards.”