The monthly increase was £0.5bn higher than the previous six month average of £1.3bn.
But secured lending looks set for a slowdown in the coming months as loan approvals for all types of mortgage transaction took a dip in March.
Loan approvals for house purchases were 67,135 in March compared to an average of 70,363 over the previous six months while remortgage approvals fell from a six month average of 34,846 to 32,492.
Brian Murphy, head of lending at Mortgage Advice Bureau, said: “The government’s Help to Buy scheme successfully set the wheels in motion for higher loan-to-value lending and consumers are now increasingly able to access mortgage finance without needing a hefty deposit.”
But Murphy said the drop in mortgage approvals signified lenders’ desire to “temper demand” while they made sure their systems and service levels adjusted to cope with the new rules.
Murphy added: “While applications are likely to take slightly longer initially under the new rules consumers can be confident that they are purchasing a mortgage that they can afford not only now but also in the future.
“This sets the foundation for mortgage growth which is both sustainable and affordable.”
