April’s net mortgage lending rose by £5.4bn, compared to £5.2bn in March. This growth was mainly driven by exceptionally strong remortgage approvals, which increased to 74,722 transactions in April, up from 60,410 in March.

BBA statistics director David Dooks said: “Pressures on household finances, stalling house prices and tighter lending criteria in response to lower liquidity are all constraining demand for house purchase and equity withdrawal loans, which are both well down on levels last year.

“In contrast, there is an active remortgaging market as people switch lenders to obtain better deals. With some £18bn of new lending and nearly 150,000 loans approved in April, it is clear that, contrary to some reports, the mainstream mortgage market has not ground to a halt.”