Mortgage approvals for house purchases lifted 1.3% to 61,300 in March from the previous month, the highest since September 2022, according to the Bank of England.

However, remortgage approvals tumbled 9.2% to 34,200 over the same period.

Saffron for Intermediaries head of business development Tony Hall says: “It certainly feels like the mortgage market recovery is underway as gross lending and mortgage approvals continue to rise.

“All eyes are now on when we might see that first base rate cut since the onset of the pandemic, which should drive more consumers back to the market.

Hall adds: “The economy still faces a number of challenges, with inflation falling at a slower rate than many expected, and this could delay a rate reduction by the Bank of England. Wage inflation and a more timid approach to rate cuts in the US are also leading some analysts to predict that the base rate may stay put until the fourth quarter.

“However, it’s refreshing that the debate about the Bank of England’s position has clearly shifted to when, and not if, rate cuts will happen. This speaks volumes about where the market is now compared to even six months ago, and we look forward to helping advisers and borrowers take advantage of the opportunity this provides.”

Bluestone Mortgages strategy director Ryan Davies points out: “Today’s figures mark the sixth consecutive increase in mortgage approvals, a sign that the market is on the road to recovery and consumer confidence is growing.”

The Bank of England base rate has remained at 5.25% since last August, as the central bank battles what it calls persistence inflation at 3.2%.