Net mortgage lending fell to £4.4bn in April, down 35% from £6.8bn in March, according to the latest figures from the Bank of England.
Lending for the month was also below the previous six-month average of £5.1 billion.
But home purchase approvals rose to 65,900 in April, above the average of about 63,100 over the previous six months, the Bank of England reports.
Remortgage approvals, which exclude product transfers, were generally unchanged compared to March.
The interest rate paid by borrowers on newly drawn mortgages rose to 4.08% in April, from 4.03% in March.
The interest rate on outstanding mortgages was 3.92% in April, down from 3.93% in March.
Propertymark chief executive, Nathan Emerson, says: “It is disappointing to see that April 2026, the period covered in today’s report, saw a decline in lending.
“The surprise drop in inflation in May could provide temporary relief to many consumers when it comes to their personal finances.
“It may also lead to a temporary rise in lending by the time May lending figures are published.
“However, after Ofgem announced that household energy prices will rise by 13% in response to geopolitical tensions, many individuals and households may face additional financial pressures in the very near future, on top of the challenges they have had to face since the start of the year.
“This may prompt some people to take a more cautious approach to spending habits and could impact both the mortgage market and the wider economy over the coming months.”
Tomer Abudi, CFO at MT, says the increase in mortgage approvals is good news given the rise in interest rates.
“It indicates that people still want or have to move and are perhaps bored of waiting for ideal conditions,” he says.
“With no positivity coming from the government and the economic outlook looking challenging, buyers will have to be flexible.
“The macro climate is hitting mortgage rates and inflation, but this cannot mask the weak leadership currently showing in the country, as there is no impetus for growth.”
OnTheMarket President Jason Tipp also feels the rise in approvals bodes well.
“Of course, these figures reflect decisions made in the early stages of the conflict in the Middle East when buyers were keen to take advantage of the competitive mortgage interest rates they were able to secure.
“It also demonstrates the continued resilience of the housing market, and the recent stabilization of the key interest rate by the Bank of England should help reinforce this sense of stability.
“Our Real Estate Sentiment Index indicates that buyers and sellers continue to adapt to market conditions.
“Even against a backdrop of ongoing political and economic turmoil, attitudes towards affordability, property values and moving home remain remarkably consistent.”
