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Mortgage market stable

Date: Thu, 21 Apr 2005

The mortgage market has stabilised albeit it at a lower level than last year, according to the Building Societies Association, the Major British Banking Groups, and the Council of Mortgage Lenders.

The Council of Mortgage Lenders discovered that gross mortgage lending reached £20.1 billion in March, up by 13 per cent compared to February, but 19 per cent lower than the same month in 2004.

The research also showed that loans for house purchases over the first quarter of the year were at their lowest levels for six years. Loans for remortgaging over the same period were at their lowest since 2002.

The Building Societies Association also found signs of stabilisation in the market, although it concluded that it is at lower levels than last year.

Adrian Coles, director general of Building Societies Association, said: "The figures suggest that the decline in mortgage activity has come to an end. After falling in the second half of last year, lending levels have remained unchanged in the first three months of this year."

The Building Societies Association mortgage found that approvals increased by 33 per cent from February to March, however levels remained seven per cent lower than the same month in 2004.

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