UK Finance has said gross mortgage lending in April is estimated to have been £20.4 billion.
This is 13.3% higher than a year earlier. The number of total mortgage approvals has also risen and is 11% higher, this increase is primarily driven by remortagage approvals which were almost 30% higher than a year earlier.
Credit card spending was 9.8% higher than a year earlier. Outstanding levels of credit card borrowing grew by 5.2% over the year, down from an annual growth rate of 5.7% in March.
Growth in personal deposits has been 1.4% over the year, slightly down on the previous six month average of 2% but still up compared to the same period last year, with consumers opting for instant access accounts over those with notice. ISA cash deposits across the high street banks saw a slight increase on the previous month to coincide with the end of the tax year.
Eric Leenders, managing director of personal finance at UK Finance, said: “April saw steady growth in mortgage lending and approvals, following a slowdown in activity the previous month. This was driven by strong remortgaging levels, as borrowers locked into attractive deals amid expectations of a base rate rise.
“Card spending has strengthened following a subdued March. Despite the recent fall in inflation and the squeeze on household incomes starting to show some signs of easing, consumer confidence remains relatively low.”
Jonathan Sealey, CEO at Hope Capital, said: “The property market, like many others, is quite tough at the moment, with a drop in house sales reported by HMRC this week and the fact that house prices are dropping in some regions both playing their part.
“However, I think it is quite difficult to read too much into general trends by looking at month by month figures. When you compare Q1 2018 with Q1 2017, overall mortgage lending was up 4%, and April 2018 is up 13.3% on April 2017.
“It is interesting to see the percentage that the high street banks have of the overall market, and encouraging to see that the lenders who can offer borrowers a more tailored service are also playing an important role in market.”
