Gross mortgage lending totalled £9.2 billion in February, according to new figures from the Major British Banking Groups.

The figure was two per cent less than in January, though there was a similar drop at the same time last year.

Loan approvals in February for house purchase, re-mortgaging and equity withdrawal were 12 per cent by number and 18 per cent by value higher than in January. There was also increased demand for house purchase loans in the month, the average value of which was 11 per cent higher than a year earlier.

Forum Response: British Bankers' Association

Ian Mullen, chief executive of the British Bankers' Association, told ePolitix.com: "Though February saw seasonally weaker mortgage lending, we expect stronger lending in the coming months, as the volume of loans approved for house purchase was noticeably higher in February. Affordable repayments to income ratios and sensible borrowing multiples suggest that the property market will hold up well this year and be supported by continued household confidence.

"February's data also show that credit cards, apart from day-to-day spending, can provide cheaper debt finance for consumers through balance transfer offers, whilst structured personal loans, one of the mainstays of personal retail banking, are preferred for big-ticket items. As consumers seek to minimise borrowing costs, they are taking advantage of the range of options available."