Net mortgage borrowing was £ 3.3 billion in April, new figures from the Bank of England show, from a record £ 11.5 billion in March.
This is what the BoE says, “Despite weaker net lending, both gross lending and repayments are above levels since early 2020. The recent fluctuations are likely to reflect the reduction in stamp duty. “
Meanwhile, mortgage approvals stood at 86,900 in April, valued at £ 20.2 billion, compared with 83,400, valued at £ 18.6 billion in March.
The total number of rescheduling approvals in April was 33,100 valued at £ 6.4 billion, the BoE data add, slightly below the 34,500 in March valued at £ 6.6 billion.
Mark Harris, CEO of SPF Private Clients, said, “It has always been a challenge to beat March excellence, and in fact lending fell in April.
“The numbers have likely been skewed by the original stamp duty leave deadline as many buyers rush to complete them before the end of March to take advantage of the benefits. After the extension, activity has calmed down somewhat, with gross lending and repayments above the levels seen since early 2020.
“There is clearly a need for credit and cash to do this with a number of lenders bringing products in the under 1 percent range to market. Favorable lending rates should be with us for at least a while and continue to support the demand for property purchases.
And Richard Pike, Sales and Marketing Director at Phoebus Software, comments: “House prices are at their highest level in seven years, but as demand increases, supply is always the problem.
“Home builders are desperately trying to catch up on lockdown restrictions in order to meet government goals for new home development.
“As always, the fluctuations in the real estate market make it difficult to predict what will happen next, but it is reasonable to expect things to continue in their current form until at least the end of June. Then we’ll see how much the stamp duty leave affected the current activity. “