The number of mortgages approved has fallen sharply, from 75,100 in March to 64,800 last month, according to figures from the British Bankers’ Association (BBA). The value of approvals (excluding remortgaging) also fell, by 10 per cent, to £9.9 billion.

However, these falls appear to be largely seasonal as April normally sees a lull between the peak househunting months of March, May and June, making it difficult to see whether recent interest-rate rises are having an impact.

The number of approvals was 1 per cent higher than in April 2006, breaking a four- month run of year-on-year declines. Their value was up 10 per cent year on year, reflecting a stable, relatively high level of demand, with prices rising an average of 0.75 per cent a month. Remortgaging is following a similar pattern, with a seasonal fall in April.

Mortgage switches account for more than 40 per cent of the main mortgage market.

Some slowing is also expected in the buoyant buy-to-let market, where some new landlords are struggling to recoup higher mortgage costs by raising rents faster.

The Royal Institution of Chartered Surveyors said yesterday that, although its members still report increases in new letting instructions from buy-to-let landlords, the pace has decelerated.

The BBA confirmed that total gross mortgage lending in April rose 12 per cent year-on-year to £17.3 billion. Net lending, after allowing for mortgage repayments, rose by £4.1 billion. After seasonal adjustments, the increase was put at £5 billion, by a small margin the lowest this year.