Net mortgage lending in April dropped in dramatic fashion, show latest figures from the Bank of England, at £300m versus the £4.8bn seen in March – the lowest net increase since December 2011.

The severity of this drop is because of the larger fall in gross lending than repayments, says the BoE. It says that gross mortgage lending came in at £14.4bn in April versus £22.6bn in March, a 36 per cent drop, and repayments totalled £13.9bn in April. In March they totalled £18.4bn – a 24 per cent fall.

Meanwhile, house approvals fell to 15,800, down from 56,000 the month before, equating to a 70 per cent drop. In February the BoE reported 73,700 approvals, meaning an 80 per cent drop in two months.

February’s number reads as the lowest number of approvals since 1993, when the BoE starting counting.

Remortgaging fared slightly better, with £6bn worth being carried out in April – 34,400 remortgages counted – versus £7.6bn in March, when there were 42,100.

Coreco managing director Andrew Montlake says: “Everyone is watching the economy and trying to predict how it will fare in the months ahead as the furlough scheme is gradually unwound.

“Whether valuations stay firm or collapse will depend on how the jobs market holds up during the summer and Autumn. Right now, with the economy propped up by the furlough scheme, we are feeling our way in the dark.”

SPF Private Clients chief executive Mark Harris adds: “We would expect May’s data to be better, with June even better still.

“With lockdown easing and surveyors able to return to physical valuations, lenders are back with higher loan-to-values, while rates are ultra-competitive. There is plenty of liquidity and lenders remain keen to lend.”