The number of mortgages approved by high street banks last month was down by just over 20% on February last year, the British Bankers’ Association has said.

Its data shows mortgage approvals of 61,361, down from 76,938 in February, and by value down from £11,5bn to £9,6bn.

Of the total number of mortgage approvals last month, 37,305 were for house purchase – down from 46,785 in February 2014.

However the BBA said that house purchase approvals are starting to trend upwards with higher demand for mortgages than at the end of 2014. It said that while year-on-year figures were sharply down, approvals rose 4.1% compared with January.

Richard Woolhouse, chief economist at the BBA, said: “The increase in mortgage approvals is welcome news and a sign that the housing market is beginning to improve.

“We’re seeing stronger demand for mortgages as consumers take advantage of some of the very competitive deals currently available.”