Mortgage approvals reached their highest level for more than a year in April, according to Bank of England (BoE) figures.The BoE said in its Money and Credit report that 65,945 mortgage approvals for house purchases were recorded in April.That represented an increase from 63,979 in March and is the highest level since January 2025.The report said the April total was above the monthly average of around 63,100 for the previous six months.The increase in mortgage approvals came despite a backdrop of rising mortgage rates in recent months as inflationary pressure has led economists to predict an uptick in interest rates later this year.Approvals for remortgaging, which only capture remortgaging with a different lender, were “broadly unchanged” compared with the previous month.(PA Graphics) (PA Graphics)Meanwhile, consumer credit borrowing was unchanged at around £1.9 billion for the month, with net borrowing through credit cards rising to £0.8 billion from £0.7 billion in the previous month.Thomas Pugh, chief economist at RSM UK, said: “Decent growth in consumer credit and another rise in mortgage approvals suggests households were unphased by the Iran war in April.“However, some of this is due to people bringing forward activity to capture lower interest rates and it is difficult to see how that positive momentum lasts.Get a free fractional share worth up to £100.Capital at risk.Terms and conditions apply.Go to websiteADVERTISEMENTGet a free fractional share worth up to £100.Capital at risk.Terms and conditions apply.Go to websiteADVERTISEMENT“The recent drop in oil prices, even with yesterday’s rebound, should help bring some normality back to the mortgage market, especially if the Bank of England takes a relatively measured view on the outlook for interest rates at its next meeting later this month.“Indeed, financial markets are now pricing in just one rate hike, albeit with a risk of a second.”Matt Swannell, chief economic adviser to the Item Club, said: “April’s increase in mortgage activity came despite the sharp rise in mortgage rates in recent months, but it likely reflects Easter-related distortions that will soon unwind.“Net mortgage lending fell to £4.4 billion in April, from £6.8 billion a month earlier.”