The number of mortgages approved by main high street banks in April 2019 was 5.4 per cent higher than in the same month in 2018, despite gross mortgage lending across the residential market falling 1.4 per cent to £20.3bn.

Figures published by UK Finance revealed that approvals for home purchase were 8.6 per cent higher in April when compared to April 2018, while remortgage approvals were 2.2 per cent higher and approvals for other secured borrowing were 0.8 per cent higher.

Commenting, Landbay CEO John Goodall said: “Mortgage lending remains subdued, and reflects the wider challenges facing the market. Lenders are having to push down mortgage rates for customers even as funding costs begin to rise, which has led to banks like Tesco bowing out of the market altogether.

“Prices have started to stabilise but until we have some clarity on the current political situation we’re unlikely to see a drastic rise in confidence, and subsequently lending.”

Highlighting the impact of subdued house price growth, Trussle mortgage expert Dilpreet Bhalgrath suggested that it could be the cause for the decrease in gross mortgage lending across the residential market.

However, the mortgage expert emphasised that homeowners are more aware of the rates lenders are offering, which is reflected in the rise in remortgaging levels. “With remortgage approvals 2.2% higher, it’s really promising to see that homeowners are still engaging with their mortgage.

“However, there are still around two million homeowners sitting on Standard Variable Rate mortgages, collectively overpaying billions of pounds in additional interest each year. This is because switching mortgage isn’t currently clear or simple.

Furthermore, in its Household Finance Update, UK Finance found that the £11.4bn of credit card spending in April 2019 was 11.7 per cent higher than twelve-months ago, reflecting consumers’ increased preference for using credit cards as a means of payment, particularly online, because they benefit from purchase protection and various other benefits. Repayments have remained in line with credit card spending, showing overall that consumers are managing their finances effectively.

Personal borrowing through loans in April 2019 was 7.8 per cent higher than in the same month a year ago, while lending through overdrafts in the month were 0.9 per cent higher.

Personal deposits in total grew by 0.9 per cent in the year to April 2019. Deposits held in instant access accounts were 2.4 per cent higher than last April, the data illustrated.

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