HMRC has reported that mortgage borrowing fell back in April by £8.2 billion.
Individuals borrowed an additional £3.3 billion secured on their homes, following a record £11.5 billion in March.
This was also lower than the £5.7 billion monthly average borrowed in the six months to February 2021.
Despite weaker net lending, both gross lending and repayments remain above levels seen since the start of 2020.
HMRC said the recent variability is likely to reflect the reduction in the stamp duty tax, which was initially expected to end in March, but has now been extended to the end of June.
Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “It was always going to be a challenge to beat March’s stellar performance and sure enough, lending fell back in April. The numbers are likely to have been skewed by the original deadline for the stamp duty holiday with many buyers rushing to complete before the end of March to take advantage.
“Now that it has been extended, activity has settled down a little, with gross lending and repayments above levels seen since the start of 2020.
“With a number of lenders launching sub-1% products, there is clearly an appetite to lend and cash available to do so. Cheap borrowing rates look set to be with us for a while at least and will continue to support demand for property purchases.”
