The Council of Mortgage Lenders has revealed gross mortgage lending was up more than 20% in March compared with February. Lending was slightly down in March of this year compared with March of 2010.

CML chief economist Bob Pannell remarked about the housing market, saying: "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."

He added: "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."

Borrowers are banking on another short term possibility. The possibility exists that staying in a variable rate product is advantageous for now. A trend is now underway in the purchase of loan products. Less than two months ago, a fixed rate mortgage loan was the loan of choice. That has completely changed. A 50/50 split in the purchase of variable rate and fixed rate loans is now common.

John Charcol’s senior manager, Ray Boulger, commented on discussed purchasing choices based on base rate, saying: "In March 2010, exactly one year after the historic cut in Bank Rate to an all time low of 0.5%, just 17% of our clients chose a fixed rate mortgage. The proportion then started increasing as the cost of fixed rates fell, reducing the premium one had to pay for security, and as people started worrying about rate increases."