According to a new report by the Council of Mortgage Lenders (CML), new mortgage approval rate increased by 8% to 40,900 in April.

While this is the fourth monthly increase in mortgage loans it is still 2% lower than it was in April last year.

Michael Coogan, the CML’s director general, said: “The market continues on a stable footing and the increase in house purchase lending is a good sign that the stability will continue throughout 2011.”

“However, the economic outlook, coupled with Bank of England subdued approvals data for April, suggests a muted summer for mortgage completions so we do not expect further increases in lending over the coming months,” he added.