The number of mortgages being approved by UK lenders fell in April, new data from the Bank of England shows.
There were 48,690 new mortgages agreed in April, down from 51,488 in March and the lowest level since February.
The BoE said borrowing of mortgage debt by individuals continued to decline from net zero in March to £1.4 billion of net repayments in April, the lowest level on record.
Net borrowing on consumer credit by individuals in April was broadly unchanged when compared to March, at £1.6bn.
During April, households deposited an additional £3.6bn with banks and building societies, following net withdrawals of £3.0bn in March.
The figurs point to a housing market in a challenging position, according to Martin Beck, Chief Economic Advisor to the EY ITEM Club.
Beck added: "Meanwhile, climbs in mortgage rates, prompted by the likelihood of more rate rises by the Bank of England, could intensify the market’s challenges further."
Myron Jobson at interactive investor, said: “The latest money and credit figures point to further signs that we have become more cautious in response to the rising cost of borrowing as part of an ongoing battle to combat stubbornly high inflation."
“Excluding the period since the onset of the Covid-19 pandemic, mortgage borrowing has plunged to the lowest level since records began as high mortgage rates, in tandem with high house prices and a higher cost of living, has made ownership uneconomical for many would-be buyers."
"“Combined with the latest Nationwide house price data, which showed the largest year-on-year fall in values in May since 2009, April's lending numbers point to a housing market struggling in the face of pressure on household finances and higher mortgage rates," EY's Beck added.