Lenders granted more mortgages in March than the six-month average, according to the latest figures from the Bank of England.

In its latest update, the Bank of England said that 63,500 mortgages were granted to homebuyers in March. The figure was up from 62,700 in February and above an average of around 63,200 over the previous 6 months.

Approvals for remortgages also rose, up to 51,300 in March from 41,200 in February.

Net borrowing of mortgage debt by individuals, meanwhile, increased to £6.2bn in March, up from £5.2bn in February and above a six-month average of £4.9bn.

Simon Gammon, managing partner at Knight Frank Finance, said the figures showed confidence amongst buyers despite the wider economic problems. “These figures chime with other indicators, including the Nationwide House Price Index, suggesting the UK housing market is holding up remarkably well despite elevated economic uncertainty and the surge in mortgage rates during March.

“Rates have since eased from their post-conflict highs, with leading fixed deals now a little above 4.5%, which should support continued resilience through the remainder of spring.

There may be trouble ahead

However, he warned that looking ahead, clear risks remain to mortgage prices, which would impact mortgage levels in future months. “Sustained higher oil prices could force lenders to reprice upwards once again,” he said.

“Margins remain extremely thin, limiting lenders’ ability to absorb volatility. At the same time, strong borrower demand is placing operational pressure on lenders, prompting repricing to maintain service levels. This dynamic risks creating a feedback loop that amplifies rate movements. While current rate levels are still low enough to support demand, any further increases would inevitably begin to weigh on activity later this year.”