There were 61,100 mortgage approvals for house purchases in April, down from 61,300 in March, which was the highest level since September 2022
Mortgage approvals dipped slightly last month, but Brits still borrowed more to climb onto the property ladder, according to new figures.
Savers also ploughed a record sum into ISAs for the month as households look to capitalise on interest rates at a 16-year high. Data from the Bank of England, released on Friday, showed that there were 61,100 mortgage approvals for house purchases in April. This was a minor drop from the 61,300 recorded in March, which had been the highest level since September 2022 amid signs of a bustling UK housing market.
This followed a slight rise in mortgage rates in April as some lenders delayed expectations for when the Bank of England will next cut interest rates from their current rate of 5.25%. Approvals for remortgaging also fell to 29,000 for the month, down from 33,500 in March. However, there was a boost in net mortgage borrowing for the month, up to £2.4billion of mortgage debt from £0.5 billion a month earlier.
Meanwhile, consumer credit borrowing dropped to £0.7 billion in April from £1.4 billion, as households spent less on credit cards. The data also revealed that households’ holding of money increased by £8.4 billion for last month. This came as households deposited £11.7 billion into ISAs, the highest for the savings account since records began in 1999.
Mark Harris, the chief executive of mortgage broker SPF Private Clients, commented: “Mortgage approvals for new purchases were fairly consistent with the previous month, perhaps reflecting mortgage rates edging upwards, which may have raised borrower concerns with regards to affordability and confidence.”
“The average interest rate paid on newly-drawn mortgages increased slightly by 7 basis points to 4.74%, reflecting some higher mortgage pricing on the back of rising Swap rates. Since then, inflation has moved closer to its 2% target, making an interest rate cut increasingly likely.”
