This is 43% higher than the £10.6bn lent in February last year and the highest total for a February since 2008, despite a small seasonal drop.
CML chief economist Bob Pannell said: “Housing market indicators have continued to be strong over recent months, once seasonal factors have been taken into account.
“First-time buyers have benefitted most from the government’s Help to Buy initiatives, with the more recent mortgage guarantee scheme now starting to push typical loan-to-value levels higher.
“The housing market got a further boost from this week’s Budget. This, together with benign developments in the economy more widely, should bolster short-term sentiment and activity.”
Stephen Smith, director, mortgage club and housing at Legal & General said the extension of Help to Buy 1 until 2020 will help sustain the market through the Mortgage Market Review rules start date on 26 April.
“However, there are still some major obstacles for those looking to get on the housing ladder or move from their current home. House prices in certain parts of the country continue to rise far faster than the rate of wage inflation making them simply unaffordable for many,” he said.
“The government’s initiatives to build more homes, announced in yesterday’s budget, will go some way to help keep the market fluid and ensure demand doesn’t continue to outstrip supply. Despite this, we still need to see much more stimulus to house building.”
