Gross mortgage borrowing of £12bn last month was 12 per cent higher than in April 2015, but down on the previous month due to the stamp duty deadline rush.
The British Bankers Association’s latest high street lending figures confirmed house purchase approval numbers resumed a downward trend in April after increased activity during the three previous months.
Numbers were some 6 per cent lower than in April 2015.
However, net mortgage borrowing was running around 3 per cent higher than a year ago, while remortgaging approvals were 16 per cent higher than last April.
Meanwhile, bank’s Isa deposits only grew by £3bn over the March and April investment period, compared with £6.2bn in the same period of 2015.
The BBA’s chief economic adviser Rebecca Harding, said: “The fact that personal deposits are growing, while Isa deposits continue to disappoint suggests consumers are using easy-access savings while the outlook for the economy remains uncertain.”
Andy Knee, chief executive of LMS, said now is the perfect environment for homeowners to remortgage.
“Low interest rates, rising house prices and improved incomes all provide homeowners with a boost to their finances. As a result of low rates, remortgagors now are paying record low repayments: annual remortgage repayments as a percentage of income fell to just 16.7 per cent.”
Mark Harris, chief executive of mortgage broker SPF Private Clients, agreed that remortgaging has gone from strength to strength, as some borrowers worry that interest rates will start to edge higher and are choosing to lock in.
“There are some excellent deals available and lenders remain keen to lend so there are likely to be plenty of options for borrowers in coming months, assuming they meet tighter affordability criteria.”
peter.walker@ft.com
