Gross mortgage lending in April 2006, fell by 12%, compared to the previous month, according to the Council of Mortgage Lenders (CML).

However, Aprils figure of £25.1bn is the highest April lending figure on record.

Michael Coogan of CML said: "The record figures we have witnessed over the past six months illustrate that the market is in robust shape. Even so, the level of new mortgage approvals has stabilised in recent months, and we do not expect the underlying level of lending to rise from recent levels."

"In the past couple of months the interest rate picture has changed and financial markets are expecting the Bank of England to raise rates this summer. If this happens, housing and mortgage market activity is likely to slow down from the recent high levels as the year progresses."