Latest figures from the Bank of England show there were 45,723 mortgage approvals in January, up from 42,719 in December.

Meanwhile, gross mortgage lending by mutuals was £1.4 billion in January 2011, 38% greater than the £1 billion lent in January 2010.

Mutuals approved £1.1 billion worth of loans in January, up 37% compared to the £0.8 billion in January 2010.

Adrian Coles, director-general of the Building Societies Association, said: “Mortgage lending by mutuals in January was up year on year