Remortgaging also fell slightly over the month, from 29,900 to 29,600, according to its latest Money and Credit Report.
The bank added that individuals borrowed £1.2bn of mortgage debt in May, down from £2.2bn in April.
Gross lending increased for the fourth consecutive month to £22.2bn in May, up from £21.1bn in April, while gross repayments saw an increase of £1.2bn over the same period to £20.5bn.
Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners, said: “UK net mortgage approvals – an indicator of future borrowing – dipped in May as lingering affordability concerns caused borrowers to approach the market with caution.
“Interest rates have remained on pause at a 16-year high of 5.25% since August last year, something also impacting net mortgage lending, which fell in May amid wavering consumer confidence.
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“Inflation may be easing, but persistently high borrowing costs are still making it hard for buyers to secure the homes they want.”
