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Net borrowing of mortgage debt decreases sharply by £13.7 billion to -£0.8 billion in April

ended 02. June 2025

Net borrowing of mortgage debt by individuals decreased sharply by £13.7 billion to -£0.8 billion in April, according to the Bank of England's latest Money & Credit report. This followed an increase in net borrowing by £9.7 billion to £13.0 billion in March. The annual growth rate for net mortgage lending decreased from 2.7% to 2.5% in April. Gross lending decreased significantly to £16.9 billion in April, from £39.9 billion in March, which was the greatest fall since June 2021 (£42.4 billion). This followed an increase in net borrowing by £9.6 billion in March. Meanwhile, net mortgage approvals for house purchases, which is an indicator of future borrowing, decreased for the fourth consecutive month, with a fall of 3,100 to 60,500 in April. By contrast, approvals for remortgaging increased by 1,600 to 35,300 in April, following an increase of 1,000 in March. Newspage asked brokers for their views, below.

5 responses from the Newspage community

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Andrew MontlakeVerified
CEO at Coreco
That's a major drop-off in net mortgage borrowing but one that can be attributed to the stamp duty rules changing. Even though mortgage approvals have also dropped again slightly, there's still life in the market. May's better than expected house price data from the Nationwide underlines that demand is still very much there. The property market is holding its own despite numerous headwinds, both domestic and from overseas.
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Pete MuglestonVerified
Mortgage Advisor & Managing Director at onlinemortgageadvisor.co.uk
These numbers clearly show the before and after of the Stamp Duty deadline, which is clear from gross lending dropping to £16.9 billion in April from £39.9 billion in March. Borrowers were obviously keen to lock in deals before the changes in taxation came into force. House purchase approvals falling for the fourth month in a row suggests the housing market is slowing down, and this may continue given swap rates are rising and we're unlikely to see any more lenders offer sub-4 % rates in the near future. These numbers indicate fragile confidence in the housing market, and that increases or decreases in inflation and global economic uncertainty could have a big impact in the remainder of the year.
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Rob PetersVerified
Principal at Simple Fast Mortgage
Lower mortgage rates early in the spring helped keep the market moving, especially among first-time buyers and remortgagers, but the momentum has started to waver with rising swap rates now back in play. We’re not in panic territory yet, but the window for sub-4% deals may be closing. If you're in the market, especially within 6 months of renewal, get advice and lock in now to hedge your bets. Household debt is quietly becoming a concern again. We’re seeing more clients juggling personal loans or revolving credit while applying for mortgages, which is affecting affordability. The cost-of-living pressure hasn’t gone away, it’s just hiding under the mask of fixed-term debt and high-rate borrowing.
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Katy EatentonVerified
Mortgage & Protection Specialist at Eatenton Finance
Such a sharp fall was always a possibility as the stamp duty deadline skewed market activity. Transactions were brought forward and that, very clearly, has rippled through into April's numbers. In April, demand, in our experience, was still relatively strong, driven by falling mortgage rates. Swap rates, however, are now nudging up so whether that continues remains to be seen.
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Justin MoyVerified
Managing Director at EHF Mortgages
This clearly shows the effect of the Stamp Duty cliffedge, as buyers were looking to save a fortune in tax before the end of March, and as a result the April compeltions were artifically low. Buyers continued to be active, recalibrating their budgets and property choices even with this additional stamp cost, and we should see a more natural trend for the remainder of the year.