Mortgage borrowing fell to £4.7 billion in February, from £5.9 billion in January, according to figures from the Bank of England.

However, lending remains above the pre-pandemic average of £4.3 billion in the 12 months up to February 2020.

Approvals for house purchases, an indicator of future borrowing, fell to 71,000 in February, from 73,800 in January.

Approvals for remortgaging to a different lender rose to 48,200 in February.

Roger Evans, director of home finance distribution at Gatehouse Bank, said: “Approvals for new mortgages are still high above pre-pandemic levels, but this monthly fall suggests that low housing stock is starting to have an impact on the number of buyers seeking mortgages.

“Many people are acting on their long-held plans to move home, with a number of them still searching for larger homes to accommodate new hybrid and remote working lifestyles.

“When it comes to rate rises, the Bank of England’s direction of travel is well understood. All buyers will be conscious that to act quickly will mean they’ll likely beat further increases. This rush to secure properties sooner rather than later is probably going to keep approvals above the pre-pandemic norm until at least the summer though continued softening is expected if stock levels do not start to bounce back.”

Nitesh Patel, strategic economist at Yorkshire Building Society, added: “Mortgage data suggests housing purchasing activity continued to hold up well particularly when compared to the pre-pandemic figures for 2019. The £4.7bn rise in net mortgage lending and 70,972 mortgage approvals were both higher than their pre-pandemic averages of £4.1bn and 65,700 respectively.

“Whilst these are down from January, they remain high for this time of the year. Low borrowing costs, a strong jobs markets and importantly remote working are key drivers – and will remain so for the next few months.”