The total amount lent in mortgages in April fell by around nine per cent compared to the previous month, the latest figures indicate.
A study from the Council of Mortgage Lenders (CML) shows that the total given out during April was £28.8 billion - down on the March 2007 figure of £31.7 billion, but up 18 per cent on April 2006 levels.
The CML said that, if the figures were seasonally adjusted, they would show that lending had remained in a "fairly narrow range" over the first four months of 2007, indicating a "stable picture".
"Lending is still strong, but it does seem to be stabilising in 2007 following its major growth in 2006," said CML director general Michael Coogan.
"With higher interest rates now beginning to have an impact, the modest slowing in activity that we have been expecting over the rest of the year looks set to materialise. Even so, we continue to expect lending in 2007 to be around four to five per cent higher than in 2006."
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