Net mortgage borrowing rose from £3bn in April to £6.6bn in May, shows new data from the Bank of England.

The BoE remarks that this figure is “slightly higher” than the six-month average of £6.4bn and above the average for the year to February 2020 – £4.2bn.

House purchase approvals rose slightly, from 86,900 in April to 87,500 in May, with the value increasing from £19.8bn to £19.9bn, the data also shows.

At the same time, remortgage approvals rose by a small amount too, from 33,400 in April to 34,800 in May, with the value rising from £6.5bn to £6.8bn. “This remains low compared to the months running up to February 2020,” says the BoE.

Coreco managing director Andrew Montlake comments: “Even though the chance of beating the stamp duty deadline was remote, mortgage approvals remained high in May. This shows that record low borrowing rates and the radical shift to homeworking have been as much a driver of transaction levels as tax savings.

“The knock-on effect of a fundamental lack of stock is pent-up demand, especially among first-time buyers and landlords, and this will support activity levels over the summer.

“The increased appetite among lenders for self-employed borrowers is also boosting mortgage take-up. Lenders are increasingly concluding that self-employment may be less of a risk than employment in the current market.”

MT Finance director Tomer Aboody adds: “We would argue that the government should be looking at how to release further properties onto the market by reducing or removing stamp duty for downsizers.

“The stamp duty holiday has helped first-time buyers and those moving up the ladder alike; now we need some assistance for those wanting to downsize and move into smaller properties, in turn freeing up larger family homes and helping keep a lid on prices.”

Meanwhile, Dashly head of intermediaries Iain Swatton warns: “Throughout May and indeed into June, lending levels have been high because there are so many incentives to buy, from the Mortgage Guarantee Scheme to government-backed savings products.

“But higher inflation rates are creeping into the economy, which will inevitably have an impact on how much you pay on your mortgage. Lenders borrow to lend, and if it costs more, they will pass on the cost to the consumer.”