Lending for the month was also below the previous six-month average of £5.1bn.

But approvals for house purchases increased to 65,900 in April, above an average of around 63,100 over the previous six months, the Bank of England reports.

Approvals for remortgaging, which exclude product transfers, were broadly unchanged when compared to March.

The interest rate paid by borrowers on newly-drawn mortgages increased to 4.08% in April, from 4.03% in March. 

The rate on the outstanding stock of 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 that today’s report covers, experienced a decrease in lending.

“A surprise decrease in inflation in May could provide temporary respite for many consumers when it comes to their personal finances. 

“It might also trigger a temporary uplift in lending by the time May’s lending figures have been published.

“However, now that Ofgem have announced that household energy prices will rise by 13% in response to geopolitical tensions, many individuals and families may be facing 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 steer some people to apply a more cautious approach regarding spending habits and could impact both the mortgage market and the wider economy across the forthcoming months.”

MT Finance director Tomer Aboody says the increase in mortgage approvals is good news given that rates have climbed.

He says: “It indicates that people still want or have to move and perhaps are getting bored of waiting around for optimal conditions.

“With no positivity coming from the government and the economic outlook looking tough, buyers are having to be resilient. 

“The macro climate is hitting mortgage rates and inflation, but that cannot hide the poor leadership currently in evidence in the country, where there is no push for growth.”

OnTheMarket president Jason Tebb also feels the rise in approvals bodes well.

“Of course, these figures reflect decisions made in the earlier stages of the conflict in the Middle East when buyers may have been keen to take advantage of competitive mortgage rates they had managed to secure. 

“It also demonstrates the ongoing resilience of the housing market and the recent holds in base rate from the Bank of England should further help reinforce this sense of stability.

“Our own property sentiment index suggests that buyers and sellers continue to adapt to market conditions. 

“Even against a backdrop of ongoing political and economic turbulence, attitudes towards affordability, property values and moving home remain remarkably consistent.”