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Latest statistics from the BBA show that despite lending being 6 per cent less than the same time last year, April's mortgage lending was stronger than in March.

Gross mortgage lending totalled £17.8bn in April, compared with £16.6bn in March and the six-month average of £17.2bn.

While approvals for remortgaging were strong in April, the number of approvals for house purchase continued to be much less than the same time last year.

David Dooks, statistics director for the BBA, 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."