Whilst mortgage approvals have slumped Isas received a £9 billion boost in April as the new tax year starts.
High interest rates are attracting savers and in April there was a net flow of £9 billion and protecting your savings is a “top priority” for savers.
Sarah Coles, head of personal finance at Hargreaves Lansdown, said: “Isas are having their moment in the sun.
“Higher savings rates and frozen tax thresholds mean protecting our savings from tax is a top priority.
“Meanwhile mortgage misery reflects how tough the start of the year has been in the property market.”
Aaron Strutt, product and communications director at Trinity Financial, said: “The issue is that every time the Bank of England hikes the base rate, more confidence is sapped from the mortgage and property markets.”
Hina Bhudia, a partner at Knight Frank Finance, said: “The recovery in home purchasing activity paused in April as mortgage rates continued to tick up.
“Rates are likely to continue rising amid expectations that the Bank of England base rate will need to rise meaningfully higher than its current level of 4.5%.
“As of this morning, borrowers could still secure five-year fixed-rate products below 4.5%, but likely not for long. Leading two-year fixed-rate products are approaching 4.75%.”
Joanna Elson, chief executive of the Money Advice Trust, the charity that runs National Debtline and Business Debtline, said: “Consumer credit borrowing continues to grow significantly, which partly reflects the impact that sustained high costs are having on household finances.
“With many incomes struggling to cope, there is a risk that more people are left using credit to plug gaps in their budgets.”