The British Bankers’ Association (BBA) released information in reference to gross mortgage lending in April that revealed a decline of 13% to £10.5 billion in the 12 months to April 2015. In a month to month comparison, there was a 2% increase from March. While a year to year analysis, showed there was an increase of 3% in April over data recorded for April 2014.

Remortgaging also showed an increase for April at 6%.

Richard Woolhouse, the chief economist at BBA, remarked on gross lending, saying, “Business lending has risen in three of the first four months this year indicating that we might have reached a turning point. There was a significant pre-election jump in mortgage approvals which we would expect to continue in the coming months.

“There was a sharp rise in the amount savers deposited in their bank accounts and also in the amount people are borrowing through personal loans and credit cards. This suggests that consumer spending will continue to drive the British economy forwards.”

In a statement, Mark Harris, chief executive of mortgage broker SPF Private Clients, said that borrowers are likely taking advantage of the continued low interest rates being offered on mortgage and remortgage deals.

He said, “Borrowers are taking advantage of record low mortgage rates and the signs are that these will continue to be competitive over coming months.

“Remortgaging numbers also continue to grow as borrowers take advantage of lower rates and their improved circumstances to secure a new deal.

“Many people have more equity in their homes than they did a year or two ago, which should make it easier to remortgage. And with renewed talk of the possibility of an interest rate rise at some point, many borrowers are opting for the security of a cheap fixed-rate mortgage.”