The Bank of England’s Money and Credit report showed that the level of gross mortgage lending was notably above the six-month average of £23.9bn.
During the period, approvals for house purchases rose to 63,500, up from 62,700 the month before, while remortgage approvals jumped from 41,200 to 51,300.
The average interest rate on newly drawn mortgages fell from 4.1% to 4.3% over February to March, while the typical rate on outstanding mortgages increased slightly from 3.93% to 3.95%.
Gareth Lewis, deputy CEO of MT Finance, said: “It’s not surprising to see net mortgage approvals picking up in March, as there was a rally, as buyers and sellers tried to push through deals before mortgage rates rose. There was a lot of chopping and changing, with lenders pulling rates at short notice as swap rates ballooned, and borrowers rushed to secure deals.
“Transaction levels remain depleted, and with interest rates on hold for now, impetus must come from elsewhere. The government should be doing more to support the housing market and encourage activity and confidence, which would have the knock-on effect of benefitting the wider economy.”
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The value of repayments rose from £18.6bn to £19.7bn, slightly below the six-month average of £19.8bn. Meanwhile, the net borrowing of mortgage debt increased to £16.2bn in March, up from £5.2bn in February. Again, this was above the six-month average of £4.9bn.
During March, the annual growth rate for net mortgage lending fell from 3.4% to 3%.
