The UK housing market is possibly showing signs of life.  At least that is what the two latest sets of mortgage lending data represent.  Figures from the Bank of England indicate the housing market sector is starting to recover in a stronger fashion.  Mortgage lending is on the rise as the three months leading to March were a respectable 0.9 billion pounds in February, 0.3 billion in January and 1 billion in December.  Additionally, the Council of Mortgage Lenders reported gross mortgage lending for the month of March totaled almost 12 billion pounds.  Mortgage lending is a prime indicator in the strength of any housing market and the UK housing market is no exception.   

Mortgage lending activity was fairly subdued during the year of 2012.  This year has already seen a great amount of activity during the first quarter of 2013.  One big reason for the increase in mortgage lending during the last few months is the Funding for Lending scheme which was introduced by the government in the month of August, 2012.

The Funding for Lending scheme was designed to help with recovery of the UK housing market.  It enabled lenders the opportunity to offer borrowers mortgage loans at a low interest rate.  The ultimate goal of this was to put more lending in the hands of borrowers who could otherwise not afford the typical interest rate.

Aside from gross mortgage lending, remortgage activity has picked up as well.  It is estimated remortgages will continue to increase in number as the temperatures heat up and the housing market selling season officially gets underway.