According to the Bank of England net mortgage borrowing was £11.8 billion in March, the strongest since the Bank of England's Money and Credit series began in April 1993, its latest data shows. This surpasses the previous peak of £10.4 billion in October 2006. The strength in net lending reflected gross lending also reaching a new series high in March of £35.6 billion. The strength in mortgage borrowing follows a large number of approvals for house purchase. These approvals have fallen from a recent peak of 103,100 in November to 82,700 in March, but remain above the 73,000 approvals seen in February 2020. Approvals for remortgaging with a different lender remained broadly unchanged at 34,800.
The data also shows that the average interest rate on newly drawn mortgages rose 4 basis points to 1.95% in March. That is above the rate in January 2020 (1.85%), and compares to a series low of 1.72% in August 2020.