Total gross lending in February remained flat at £17.2 billion, according to the latest data from the Council of Mortgage Lenders, virtually unchanged from January's figure of £17.3 billion but 18% lower than in February last year (£21.1 billion). There is a strong seasonal trend to mortgage lending, with a marked fall in lending seen every year in January and February, so this flat trend in lending was expected.

Both lending for house purchase and remortgaging decreased marginally, with a compensating marginal increase in further advances. In February 2005, lending for house purchase made up only 39% of total mortgage lending. This is the lowest proportion since May 2003 and the second lowest monthly figure on record.

The number of loans for house purchase also fell, by 3% from 63,000 loans in January to 59,000 in February. This also is the lowest monthly figure on record, although monthly data only exists back to 1998. Within the total loans for house purchase, the proportion of loans to both first-time buyers and movers remained the same as in January at 30% and 70% respectively. Remortgaging accounted for 49% of all loans, almost the same as the proportion in January.

Income multiples continued to edge up for both first-time buyers and movers. The typical loan to a first-time buyer in February was 3.22 times the combined income of all named borrowers for the mortgage. For a mover the figure was just under 3 times.

The take-up of fixed rate products fell in January to 38% of all loans, from 42% in January, in favour of variable rate products.

Commenting on the figures, CML Deputy Director General Peter Williams said: "The mortgage market in February was predictably flat. The CML expects to see some pick-up in activity during the spring, although neither transactions nor price increases will reach last year's levels."

Remortgaging and further advances are set to account for more lending than house purchase for the time being.