This follows a fall of 400 mortgage approvals in January, the central bank’s latest Money and Credit report shows. 

Approvals for remortgaging to a new lender were down by 800 to 32,000 in February, following an increase of 2,100 the previous month. 

Residential mortgage borrowing fell by around £900m to £3.3bn in February, following an increase in net borrowing of about £800m in January.  

The annual growth rate for net mortgage lending was little changed at 1.9% in February.  

However, gross lending lifted to £24.3bn in February, from £21.7bn the previous month –  and was the highest since November 2022, when it hit £24.9bn.  

Gross repayments also increased in February, to £19.8bn from £16.3bn. 

The survey added that the ‘effective’ interest rate – the actual interest paid – on newly drawn mortgages rose by 2 basis points, to 4.53% in February.  

The rate on the outstanding stock of mortgages was 3.87% in February, up from 3.81% in January. 

The data comes as the base rate stands at 4.5%, after three quarter-point cuts since August, with inflation at 2.8%, above the central bank’s 2% target.

OnTheMarket president Jason Tebb says: “With approvals for house purchases, an indicator of future borrowing, dipping slightly again in February after a modest fall in January, market stability and buyer confidence continues to be steady.

“As the rate on newly-drawn mortgages rose again in February, along with the rate on outstanding mortgage stock, affordability remains a concern for borrowers. 

“Two rate reductions in the second half of last year, followed by one so far this year is helping but mortgage rates are still higher than many have grown used to in recent years.

“Further reductions from the Bank of England would provide a welcome shot in the arm for the market, particularly with the stamp duty concession ending today.”

Broadstone senior Director, Risk Richard Pinch adds: “Continued economic uncertainty, stickier inflation and therefore interest rates, plus the end of the stamp duty holiday all appear to be conspiring to deter home buyers with both mortgage borrowing and approvals falling in February.

“Despite the strength of the property market in terms of pricing, it is clear that there is still considerable fragility in consumer confidence at the minute.

 “As global economies hold their breath as they wait to see the detail and impact of President Trump’s tariffs on Wednesday, it seems unlikely that sentiment is likely to strengthen in the near-term although there is still the prospect of at least a couple of interest rate cuts from the Bank of England.”

Propertymark chief executive Nathan Emerson points out: “With the wider global economy seeing upheaval, many people remain cautious about how this might affect aspects such as the rate of inflation and base rates domestically.  

“Although overall, we are seeing an encouraging level of growth year on year within the housing market, it is vital consumers feel confident enough to approach a potential house move when looking at their affordability.  

“We have seen a strong start to the year overall, and as we head further towards the summer months, we remain optimistic to see further market momentum.  

“It does, however, remain imperative that the rate of inflation remains closely aligned with the initially set target of 2% before the Bank of England will likely consider any new base rate cuts.”