The number of mortgages approved in February 2018 was down 1.25 per cent compared to January, according to the latest mortgage monitor from chartered surveyor e.surv.
The number of approvals in February is also down compared to the same month last year, with a drop of 2.6 per cent reported.
There was also a drop in the proportion of loans approved to borrowers with large deposits – defined by this survey as those with a deposit of 60 per cent or more.
In February 2018 33.1 per cent of all loans went to this market segment, down on the 33.5 per cent recorded in January.
However, the data found things were looking positive for first-time buyers and those with small deposits as the proportion of these categories securing mortgage approvals increased by 0.1 per cent to 21.1 per cent.
There were 66,364 total mortgages approved in February 2018, according to the monitor.
E.surv director Richard Sexton says: “While the number of approvals fell slightly in February, this came after two stellar months for the UK mortgage market – prompted by a rise in the Bank of England base rate at the end of last year.
“Activity is expected to pick up again in future months as existing homeowners continue to feel the cost of increased mortgage payments in their pockets. “Attention will also turn to when the next base rate rise takes place, with many experts predicting this for the late spring or early summer. However, with the recent Spring Statement announcing Stamp Duty relief has helped over 60,000 first-time buyers, market conditions are still very favourable right now for those looking to take their first steps.”