Net mortgage approvals for house purchases fell to 60,000 in January, down from 61,000 in December, new Bank of England (BoE) figures have shown.

The central bank’s data also indicated that approvals for remortgaging, which only captures remortgaging with a different lender, also fell in January to 38,100, down from 38,400 in December.

In total, net borrowing of mortgage debt by individuals decreased to £4.1bn in January, from £4.5bn in December, while the annual growth rate for net mortgage lending decreased slightly to 3.3% in January, from 3.4% in December.

Secured gross lending increased slightly, however, to £23.4 bn in January, up from £23bn in December, although was still slightly below the six-month average of £23.8bn. Repayments increased in January to £19.1bn, from £18.8bn, also below the six-month average of £20bn.

Chief executive of mortgage broker SPF Private Clients, Mark Harris, commented: “Although mortgage approvals dipped again in January, there is an underlying resilience to the housing market which is starting to make itself felt now that the Budget is out of the way.

“As we move towards spring, the good news for borrowers is that lenders are keen to lend and have the funds available to do so. Many of the big lenders have reduced their mortgage rates and while some have increased pricing, we expect rates to jump around, rather than significantly move one way or another.

“Remortgaging numbers slipped slightly, suggesting that borrowers coming off low rates are mostly still shopping around for the best rate possible rather than opting for the ease of sticking with their existing lender.”

Director of specialist lender MT Finance, Tomer Aboody, added: “As net mortgage approvals reduce again in January, the market is still feeling the hit from the Chancellor's Budget along with the lack of constant support for the market.

“Some encouragement from the government would be timely, perhaps in the form of reducing or reforming stamp duty, encouraging more people to transact. While interest rate reductions are helpful in encouraging activity, on their own they do not seem to be enough to boost transaction numbers.”

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