Gross mortgage lending across the residential market was down 0.4 per cent in May 2019 when compared to the same month in 2018, falling to £21.9bn, according to the latest figures published by UK Finance.

In its most recent Household Finance Update, the body revealed the number of mortgages for home purchase approved by main high street lenders in the month was 9.1 per cent higher than in May 2018, reaching its highest level since June 2016, despite the rise in activity from challenger banks and specialist lenders.

However, looking at the remortgaging market, approvals were 3.7 per cent lower than this time last year. Meanwhile, approvals for other secured lending were 5.9 per cent higher than in May 2018.

Commenting specifically on the mortgage statistics and the impact of the Conservative leadership race, Trussle mortgage expert Dilpreet Bhagrath said: “The Conservative leadership race is at the forefront of everybody’s minds, and it’s crucial that our new Prime Minister takes into account the housing market whilst drawing up policies and a new cabinet.

“The slowdown in gross mortgage lending over the last year could be a symptom of the current political landscape, putting prospective buyers off purchasing a home at this time. The Government and industry need to work together to make homeownership more accessible and prioritising the development of innovative solutions and mortgage products is crucial to making this happen.”

Bhagrath urged prospective buyers “not to be lured” into making a mortgage decision based only on the current political climate, arguing that homeowners need to take their current and future plans into consideration to “secure the right mortgage deal for their circumstances”.

Just Mortgages and Spicerhaart national operations director John Phillips added: “These latest figures from UK Finance continue the shift we saw from the regional lending trends at the end of last month - an increase in home purchase mortgage lending and a fall in remortgage approvals.

“We knew there had to be a change at some point, as all those people who had been delaying buying because if Brexit would eventually decide to make a move, and now we can see that change has happened, with home purchase approvals at their highest level since June 2016, which is just after the referendum.

“And I hate to say it, but I think this is about Brexit. The deadline for leaving Europe has already been delayed until October 31, and in all likelihood – thanks to a change in Prime Minister between now and then – will be delayed again. House prices are relatively steady, rates are still low and incentives like Help to Buy are still in place, so now is a good time to buy.”

Phillips noted that home purchase “always spikes over the summer” and has predicted that levels will rise further going into the next few months.

On the remortgaging statistics, the Just Mortgages and Spicerhaart director indicated that he was not too concerned, citing that it is not “particularly significant”. “There had been such a huge flurry of remortgage business over the past 18 months that it couldn’t stay at those levels forever so it was almost inevitable that it would start to slow down,” Phillips said.

Furthermore, the £11.3bn of credit card spending in May 2019 was 5.6 per cent higher than in May 2018, reinforcing that Britons are relying on card payments while slowly abandoning cash. Despite the increase in credit card spending, repayments have remained in-line, suggesting that consumers are managing their finances effectively overall.

Personal borrowing through loans in May 2019 was 9.3 per cent higher when compared to the same month last year, and lending though overdrafts in the month was 3.2 per cent lower. Despite personal borrowing levels on the rise, the value of deposits held in instant access accounts increased by 3 per cent in the month over this time last year.

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