The figures represent a 59% month-on-month and a 60% year-on-year growth as borrowers took out 69,800 loans. 

First-time buyers borrowing was up 32% on the previous month while remortgage activity was down 2% from February. 

“Activity was distorted in March due to a rush to beat the introduction of changes to stamp duty on second properties in April, alongside the seasonal uptick in activity before Easter,” Paul Smee, Director General of the CML, explained.  
“While the increases are substantial, these supercharged levels of activity are likely to be temporary and will fall back over the summer months.”

John Phillips, Group Operations Director at Spicer Haart and Just Mortgages, agreed the surge in activity was down to the change in stamp-duty rates and the rush to have applications completed before the deadline.

“Although the dust has started to settle on this recent change, we are likely to see further distortion in the mortgage market due to the impending EU referendum, which will inevitably weigh on sentiment and could affect the economy as a whole. 

“It is, of course, difficult to gauge exactly what will happen before and after the referendum, but it is widely anticipated that lending will return to more ‘normal’ levels in the coming months.”

Meanwhile, Matt Andrews, Managing Director of Bluestone Mortgages, felt that competitive low rates were good news for some borrowers, but felt many people were finding the loan-application process difficult with competitive rates and products not always available to them.

“The tempting headline rates are targeted at those with perfect credit scores and do not take into account an individual’s personal circumstances. 

“This can include people who are self-employed with inconsistent cash flows, as well as customers with adverse credit histories caused by genuine life events such as divorce.”

Matt concluded that these experiences can often have a negative impact on an individuals’ finances and result in them being locked out of many high-street lender’s strict scoring models. 

“It is this growing group of borrowers who want, need and deserve a deeper underwriting experience to ensure the nature of their situation is fully understood. 

“To ensure a consumer’s individual circumstances are taken into account, and lending decisions are made on a case-by-case basis, technology in the mortgage market needs to retain its human touch.”