The number of mortgages approved for house purchase has dropped for the first time in three months.

Data from banking trade body UK Finance showed that the number of mortgage approvals for home purchase fell 2.3% between May and June to 48,539.

Approvals had been steadily rising between March and May.

The number of mortgage approvals was still up 2.9% annually.

Commenting on the data, Andrew Montlake, director of mortgage broker Coreco, said: “The uptick in the number of mortgages approved for home purchases compared to June last year shows the market has been holding up despite the political backdrop.

“There was clearly a lot less confidence in the first quarter, as this week’s HMRC data showed home sales in June were down by 16.5% compared to last year.

“The UK’s economic fundamentals remain strong but the effect of the Brexit countdown on confidence is likely to prove stronger in the months ahead.

“A lot of people will also be waiting for any policy changes that could improve their position under Boris Johnson, especially in relation to Stamp Duty.

“We expect to see a pick-up in remortgage activity in August and September given that the likelihood of a no-deal exit from the EU has now ramped up significantly.

“People are bracing themselves for a period of potentially strong turbulence, and locking into the lowest mortgage rates possible provides vital protection.

“While a number of home moves will always proceed out of necessity, we expect overall transaction levels to slow in the countdown to 31 October.

“With so many unknowns in play, many households will sit tight during the next two to three months.

“But this could be an expensive decision if the market rebounds as ‘no-deal’ proves to be not such a big deal after all.”