David Dooks, statistics director for the BBA, said “economic uncertainty and subdued confidence continues to determine borrowing behaviour, with households and businesses reducing borrowing and building up deposits where possible”.
Gross mortgage borrowing of £7.6bn in March was below the recent monthly average of more than £8bn.
Mr Dooks said that although the government’s Funding for Lending scheme had made the mortgage market more competitive and allowed smaller institutions to offer attractive rates, the main high street banks still provided 60 per cent of new mortgage borrowing.
