Mortgage lending is cooling as high borrowing costs, economic woes and political upheaval hit demand among would-be house buyers.

The Bank of England’s survey of lenders found that banks and building societies consulted expect demand for mortgages to decrease over the summer.

Karim Haji, the global and UK head of financial services at KPMG, said: ‘While major lenders have cut mortgage rates and oil prices have eased, the outlook remains volatile.

‘Stubborn inflation, lingering energy cost pressures and low consumer confidence linked to cost-of-living and job security concerns will continue to fuel economic and financial anxiety for many.’