Net mortgage borrowing went up from £4bn in December 2021 to £5.9bn in January this year, new figures from the Bank of England (BoE) show.

This, the BoE says, is above the pre-pandemic average of £4.3bn in the 12 months to February 2020.

Gross lending also rose, from £22bn to £23.8bn over the same time span.

Meanwhile, house purchase approvals increased from 71,200 to 74,000, and from £16.1bn in value to £16.8bn.

And remortgage approvals rose too, from 45,100 to 46,200 – and from a value of £9.1bn to £9.4bn.

The BoE adds that the interest rate paid on new mortgages was static, at 1.58%, and the rate on outstanding mortgages shifted upward by just 1 basis point, to 2.01%.

Knight Frank Finance managing partner Simon Gammon says: “We expect [this] data to show another pick up in the coming months. Many potential purchasers opted to wait during the pandemic, whether due to low stock or the uncertain outlook.

“We’re now seeing large numbers seeking to move before rates rise further. The limiting factor on purchasing activity during the weeks ahead will be the shortage of properties to purchase.”

He adds: “The BoE’s remortgaging data doesn’t capture deals when borrowers stick with their current lender, but we are seeing significant numbers of borrowers looking to remortgage ahead of another potential rate rise in March.

“There is little doubt that mortgage rates will continue to rise over the course of the year, what’s unclear is how fast. The outlook is much more uncertain amid the escalating conflict in Ukraine.”

And SPF Private Clients chief executive Mark Harris comments: “With property prices continuing to rise, along with energy prices and the cost of living more generally, there are fears that this won’t remain the case. But with the BoE announcing plans to scrap its mortgage affordability test, in theory lenders will be able to lend more, helping first-time buyers in particular.

“Fears that banks will act irresponsibly and lend much more than borrowers can afford to repay are likely to be wide of the mark.

“Banks will keener to attract high income households with relatively low expenditure, who can best afford to cover increases to their mortgage payments.”