Net mortgage borrowing fell from £4.6bn in February to £7bn in March, according to new figures from the Bank of England (BoE).
This, according to the BoE, means borrowing remains above the pre-pandemic average through February 2020 of £4.3tn.
Meanwhile, the number of house purchase approvals fell slightly to 70,700 from 70,970 in February, while the value of those approvals fell from £16.8bn to £17.2bn of pounds sterling.
That’s above the pre-pandemic average of 66,700.
Mortgage approvals fell from 48,410 to 48,770, and worth £9.9bn to £10.1bn – below the pre-pandemic average of 49,500, reports the BoE.
Graham Cox, founder of SelfEmployedMortgageHub.com, says: “If, as seems likely, we enter a recession later this year and mortgage rates continue to rise, demand will invariably fall.
“It is possible that the Bank of England base rate will be raised by 0.5% to 1.25% on Thursday and I would not be surprised if interest rates are north of 2% by the end of the year.
“If property prices start falling, then all bets are off. While we are still seeing healthy demand from business leaders and entrepreneurs, we have yet to feel the full effects of recent hikes in interest rates, national insurance and the energy cap.
And Altura Mortgage Finance Founder, Rob Gill, comments: “Demand in the mortgage industry is increasingly being driven by mortgages as borrowers race to secure the best possible rates ahead of daily mortgage rate hikes. mortgage lenders.
“First-time buyer interest is also strong as people seek bargains in a relatively slow market for city center apartments, with sellers made up of those looking for more space in the post-pandemic world and owners discouraged by increased regulation and higher taxes. ”