Recent figures show that the number of people remortgaging rose to a 19-month high during February as homeowners braced themselves for interest rate rises.

A total of 27,144 people switching to a new deal had their loan approved during the month, the highest level since July 2009, according to the British Bankers' Association.

The group said homeowners appeared to be keen to take advantage of the competitive deals that were currently available, after recent high inflation figures have stoked expectations that the Bank of England may raise interest rates sooner than previously thought.

But activity in the housing market remained subdued, with just 29,923 mortgages approved for house purchase, slightly ahead of January's figure, but 11% down on the same month of 2010.

It was also significantly below the level of 70,000 to 80,000 approvals a month that are thought to be consistent with a stable housing market.