Net borrowing of mortgage debt by individuals fell back to £4.1bn in January, after a from £4.5bn in December, Bank of England data shows.

The Bank’s latest Money and Credit report shows that gross lending slightly increased in January, to £23.4bn from £23.0bn in December.

By contrast, gross repayments increased in January to £19.1bn from £18.8bn in December.

The annual growth rate for net mortgage lending decreased slightly to 3.3% in January from 3.4% in December.

Net mortgage approvals (that is, approvals net of cancellations) for house purchase, which is an indicator of future borrowing, decreased to 60,000 in January, from 61,000 in December

Approvals for remortgaging (which only capture remortgaging with a different lender) fell to 38,100 in January, from 38,400 in December.

Commenting on the latest BoE data, Bestinvest by Evelyn Partners personal finance analyst Alice Haine says: “January’s savings and credit data painted a slightly bleaker picture than expected with mortgage approvals easing back, savings slowing and consumer borrowing on the rise.”

“The outlook from here remains uncertain amid renewed tensions in the Middle East. This BoE data looks back, not forward, and Britons have woken up on Monday to a very different picture following a weekend of spiralling conflict in the Middle East that is impacting energy prices, disrupting air travel and threatens supply chains.”

“Markets had been increasingly optimistic that the Bank of England would deliver a seventh rate cut very soon, supported by easing inflation, rising unemployment and lacklustre economic growth.”

“But an increasingly fragile geopolitical backdrop could derail that expectation as any significant jump in wholesale energy costs could reignite inflationary pressures once again.”

OnTheMarket president Jason Tebb comments: “Approvals for house purchases – an indicator of future borrowing – dipped again in January following December’s decline as the inactivity and uncertainty in the run-up to the Budget continued to make itself felt. Post-Budget clarity has since helped steady confidence and given buyers and sellers encouragement to press ahead with their plans.”

“Last year’s rate reductions had a positive impact on activity, and further cuts this year should boost activity and transactions. The rate on newly-drawn mortgages continues to fall, which will help ease affordability challenges.”

SPF Private Clients chief executive Mark Harris adds: “Although mortgage approvals dipped again in January, there is an underlying resilience to the housing market which is starting to make itself felt now that the Budget is out of the way.”

“The effective interest rate paid on new mortgages fell to 4.09 per cent and the rate on the outstanding stock of mortgages also fell to 3.9 per cent, suggesting that affordability is continuing to ease.”

“As we move towards spring, the good news for borrowers is that lenders are keen to lend and have the funds available to do so. Many of the big lenders have reduced their mortgage rates and while some have increased pricing, we expect rates to jump around, rather than significantly move one way or another.”

“Remortgaging numbers slipped slightly, suggesting that borrowers coming off low rates are mostly still shopping around for the best rate possible rather than opting for the ease of sticking with their existing lender.”