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Mortgage lending fell in May

Mortgage lending fell in May
Christina Hoghton
Written By:
Christina Hoghton
Posted:
02/07/2024
Updated:
02/07/2024

Net mortgage approvals for house purchases fell from 60,800 in April to 60,000 in May, said the Bank of England.

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.

“Inflation may be easing, but persistently high borrowing costs are still making it hard for buyers to secure the homes they want.”

Related: Mortgage lending supply and demand rose in Q1 2024