Net mortgage approvals climbed to 61,300 in March, a figure up slightly on February’s total of 60,500, new Bank of England (BoE) figures have shown.

This was the sixth month running that mortgage approvals have risen, as well as the highest number of net approvals since September 2022, when they reached 65,400.

Net approvals for remortgaging decreased from 37,700 to 34,200 over the same period.

The BoE’s latest Money and Credit data also revealed that individuals borrowed a net £300m of mortgage debt during March, a significant movement from the £1.6bn in February. The annual growth rate for net mortgage lending remained slightly negative at -0.1% in March.

Gross lending increased from £18.6bn in February to £20.1bn in March, which was the highest amount since February last year. Similarly, gross repayments increased from £16.6bn to £19.5bn over the same period.

“It certainly feels like the mortgage market recovery is underway as gross lending and mortgage approvals continue to rise,” commented head of business development at Saffron for Intermediaries, Tony Hall. “All eyes are now on when we might see that first base rate cut since the onset of the pandemic, which should drive more consumers back to the market.

“The economy still faces a number of challenges, with inflation falling at a slower rate than many expected, and this could delay a rate reduction by the BoE. Wage inflation and a more timid approach to rate cuts in the US are also leading some analysts to predict that the base rate may stay put until Q4.

“However, it’s refreshing that the debate about the BoE’s position has clearly shifted to when, and not if, rate cuts will happen. This speaks volumes about where the market is now compared to even six months ago.”

Octane Capital CEO, Jonathan Samuels, added: “Stability is key when it comes to mortgage market health and while we’re yet to see interest rates fall, a freeze since September of last year has certainly steadied the ship and provided the nation’s homebuyers with the confidence required to re-enter the market.

“As a result, we’ve now seen the level of mortgages being approved climb consistently for the last six months and this is a significant sign that the market is slowly, but surely, returning to full health.”

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