"As expected, growth in mortgage lending has fallen back sharply on last month proving that March's results were just a stamp duty spike."
The BBA said that "as expected, this was a slower month, following the inflated lending activity associated with borrowers completing purchases ahead of the stamp duty increase".
House purchase approval numbers have now resumed a downward trend after seeing increased activity during the three previous months which were again influenced by the stamp duty change.
Numbers were around 6% lower than in April 2015, however remortgaging approvals remain 16% higher.
Dr Rebecca Harding, BBA Chief Economic Advisor said: “As expected, growth in mortgage lending has fallen back sharply on last month proving that March’s results were just a stamp duty spike. Net mortgage borrowing is nevertheless 3% higher than a year ago."
Mark Harris, CEO of SPF Private Clients, added: "The lending market is inevitably more subdued following last month’s flurry of activity as investors and second homebuyers rushed to beat the stamp duty hike. However, April’s net borrowing was still 3 per cent higher than a year ago when the market was largely paralysed by the uncertainty surrounding the general election. This year it’s the turn of the EU referendum to create uncertainty and give investors the jitters.
"However, the referendum can’t be wholly blamed for the perceived slow down. More importantly, general confidence in the economy, both domestically and globally, as a whole has fallen. Activity at the top end of the market is muted as it comes to terms with higher stamp duty."
