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Net mortgage approvals in the UK fell in April, while approvals for remortgaging increased slightly, according to Bank of England data on Thursday.
Borrowing of mortgage debt by individuals continued to decline from net zero in March to £1.4 billion of net repayments in April.
‘This is the lowest level on record, if the period since the onset of the Covid-19 pandemic is excluded,’ the BoE said.
Net mortgage approvals for house purchases fell to 48,700 in April from 51,500 in March, while approvals for remortgaging increased slightly to 32,500 from 32,200 during the same period.
The effective interest rate on newly draw mortgages, meaning the actual interest rate paid, increased by five basis points to 4.46%.
The BoE’s own benchmark interest rate is currently 4.5%, following a 25 basis point hike in early May
The BoE noted that net borrowing on consumer credit by individuals in April was broadly unchanged when compared to March, at £1.6 billion.
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