The number of mortgages issued in April rose by 16% in April compared with the previous month, according to figures from the Council of Mortgage Lenders.

However, the number of new mortgages remains 28% lower than in April 2008, the body said.

Whereas last year, first time buyers could expect to pay a 15% deposit on a mortgage, the must now stump up 25% of the price of a property. Nonetheless, the average amount borrowed by first time buyers to purchase a home rose slightly in April to £96,000. This is the first increase since May 2008.

The CML figures echo lending data from earlier surveys. They confirm a rise in the popularity of fixed-rate mortgages, as homeowners predict a further fall in interest rates.

In January, 48% of mortgages were fixed-rate deals. This rose to 69% in April, with an average rate of 4.83% - the lowest since January 2004.

“With the interest rate cycle now at its floor, an increasing proportion of borrowers are taking out fixed rates, including for longer term periods of five to 10 years,” said CML head of research Bob Pannell.

“With expectations for rates to remain low in the near future, shorter term fixed-rate deals are less appealing than attractively priced variable-rate deals.”

However, the Nationwide is expected to increase the cost of its fixed-rates mortgages by 0.86%.

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