The latest Bank of England figures show the value of gross mortgage advances declined by more than 12% from the previous quarter to just under £70 billion

The value of new mortgage commitments in the first quarter rose by 12% compared to the previous quarter to reach £78 billion, but the value of mortgages advanced during the three-month period slipped by a similar amount.

The latest Bank of England figures show the value of gross mortgage advances declined by more than 12% from the previous quarter to just under £70 billion.

Of the 91% of mortgage advances that were to owner occupiers, the share of loans that were for remortgage rose by 2.7 percentage points (pp) from the previous quarter and by 6.8pp year on year to 28%.

The share of owner occupier advances that were for purchase dropped by 3.9pp on the previous quarter and by 8.6pp year on year to around 58%.

Within this first-time buyer advances and home mover advances both slipped.

The share of gross mortgage advances for buy-to-let rose by 0.5pp from the previous quarter and by 0.8pp year on year to around 9%.

National Association of Estate Agents Propertymark president Mary-Lou Press says: These figures present a mixed picture for the UK’s mortgage market. While the value of gross mortgage advances fell during the quarter, the increase in new mortgage commitments suggests borrowing activity could strengthen in the months ahead.

It is encouraging to see a modest increase in the share of buy-to-let mortgage advances despite significant legislative changes affecting landlords across the UK, she said.

However, many property investors remain cautious about the impact of reforms such as the Renters’ Rights Act and the Housing (Scotland) Act, and it remains to be seen how these changes will influence investment decisions over the longer term, she said.

She said: At the same time, ongoing cost-of-living pressures and global economic uncertainty continue to influence borrowing decisions.