The number of mortgage approvals in March dropped by one per cent, new figures have revealed.

According to the Council of Mortgage Lenders (CML), 46,500 mortgage deals were granted by lenders over the course of the month, 48 per cent fewer than deals agreed in March 2007.

Michael Coogan, CML director general, noted that Bank of England data predicts that the trend will continue in the coming months.

"Any improvement in credit market conditions will take time to feed through into the mortgage market," he remarked.

However, in contrast, remortgage activity remained strong over March, the research revealed.

The large number of homeowners exiting their special fixed-rate deals during 2008 accounts for this trend, the CML stated.

Also today, Legal & General's director of housing Stephen Smith said that remortgaging levels are taking "centre stage" in the current property market.



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