The number of mortgage approvals remained broadly flat in April, new figures from the Bank of England (BoE) have shown.

Net approvals for house purchases totalled 61,100 in April, a figure little changed from 61,300 in March. In terms of remortgages with a different lender, net approvals fell to 29,900 from 33,500 over the same period.

This came as individuals borrowed, on net, £2.4bn of mortgage debt in April, which compared to £500m in March.

In its latest Money and Credit report, the BoE also stated that the annual growth rate for net mortgage lending increased for the first time since October 2022, to 0.2% in April from -0.1% in March, which had been a series low in the Bank’s data.

Gross lending also increased slightly to £20.6bn in April from £20.5bn in March, taking this figure to its highest level since January 2023. Over the same period, gross repayments fell to £19.0bn, from £19.4bn.

Intermediary team manager at Saffron for Intermediaries, Holly Andrews, commented: “It is important to remember that today’s figures come off the back of six months’ of growth in mortgage approvals. While the slight dip today reflects the current financial pressures faced by borrowers, we expect activity to start increasing again as we move into the summer – a peak time for property transactions.

“When you add in inflation at its lowest level in almost three years, we can expect potential buyers to be eager to take the next step onto the property ladder.”

In the BoE’s latest figures, the effective interest rate which the Bank measures on newly drawn mortgages increased slightly by one basis point, to 4.74% in April. By comparison, the rate on the outstanding stock of mortgages increased by seven basis points, to 3.57%.

“It’s crucial to maintain perspective,” added CEO of Spicerhaart and Just Mortgages, John Phillips. “Mortgage approvals remain at healthy levels overall. However, navigating this evolving market landscape requires expert guidance.

“With swap rates continuing to influence mortgage product pricing, securing the most suitable and competitive rates becomes even more important. This is where experienced brokers come to the forefront.”

---