ELN: Total mortgage lending was an estimated £11.3 billion in March, a 21% rise from £9.3 billion in February and a 2% decline from £11.5 billion in March 2010, according to data published by the Council of Mortgage Lenders (CML).Gross lending for the first quarter of 2011 was therefore an estimated £30.1 billion, an 11% decline from the fourth quarter of 2010 (£33.9 billion) and a 1% increase from £29.7 billion in the first three months of 2010. Commenting on current market conditions, CML chief economist Bob Pannell said: “The housing market has emerged hesitantly from hibernation. Household finances are under a lot of pressure, and as a result demand for house purchase loans fell in the first three months of 2011. Lenders expect mortgage credit availability to improve this quarter, and this should help to underpin house purchase activity albeit at pretty low levels. “Remortgage demand, meanwhile, continues to firm, presumably linked to expectations of higher base rates. Remortgage approvals in February were the highest for more than two years. Stronger remortgage activity looks set to continue propping up overall lending.” Paul Hunt, managing director of Phoebus Software, said: “On the face of it, a 21% rise in gross lending sounds like exciting news for the champagne industry. But anyone who pops a cork in celebration will be left feeling flat. Mortgage lending is still very slow. The seasonally adjusted rise in lending looks much more modest and it’s worth remembering gross lending hit its second lowest point in 10 years last month. This is the second lowest level of March lending activity this decade and when public sector cuts begin to significantly boost unemployment, we could see lenders get even more nervous about borrowers’ financial security. It’s going to be some time before the economic horizon looks cloud-free and until then, prospective borrowers will continue to be left frustrated by tight lending criteria and limited mortgage finance.” John Mawdsley, chief executive officer of Omnii Solutions, said: “Make no mistake, the long-term rehabilitation of the market is still some way off. The strong month on month rise is a pyrrhic victory, set as it is against the 2% decline year on year. The 21% increase might look great compared to February – but February was a dire month in its own right. “Nonetheless, this news will still be well received by brokers. It follows the latest e.surv Mortgage Monitor which showed the average LTV is at its highest point for three years. More first time buyers got into the market in March as lenders put higher LTV products on the market, and in greater volumes. “Brokers should be encouraged that borrowers and lenders alike have shown great resilience – despite the bad news that has shrouded the economy in recent months.”