The number of remortgages applied for in April was 12 per cent lower than the March figures, while purchase applications were also down. Both were up on the levels recorded in March 2013, however.

The average value of a remortgaged property grew 6 per cent in the month of April to reach £299,375.

New regulatory changes under what is known as the Mortgage Market Review (MMR) came into force on 26 April. The rules mean lenders will have to focus on ‘affordability’ rather than income multiples.

As lenders prepared for the impact of the MMR, the number of products available to mortgage brokers grew by 5 per cent to hit 7,942. Meanwhile, the number of products in the direct channels fell by 2 per cent.

Despite the rise of the Help to Buy scheme the average deposit needed to get onto the housing ladder continues to grow. In April the average buyer had a deposit of £65,150, up from £61,325.

Brian Murphy, head of lending at Mortgage Advice Bureau, said: “A degree of slowdown was inevitable in the run-up to MMR, particularly given the exceptionally busy start to 2014. With applications up 29 per cent year-on-year, the mortgage market remains open for business and in far better shape than it was a year ago.

“MMR has made getting advice an integral part of securing a mortgage, and we are already seeing the consequences with a significant shift in the focus of new products from direct to intermediary channels.

“With lenders targeting different consumers and taking different approaches on affordability, seeking a view on products from across the market will become the best way to find one that suits your needs.”