Lending stood at £13.4bn in February, down from the £14.8bn recorded both in January 2015 and February last year.
Bob Pannell, CML chief economist, said: “Seasonal factors tend to weigh on activity at the start of the year, but looking through these, the underlying picture appears to be stabilising.
“We expect lending to improve in the coming months, as employment and earnings continue to pick up and the impact of recent Stamp Duty reforms start to feed through."
Richard Sexton, director of e.surv chartered surveyors, said: “It’s the story of the tortoise and the hare – the reconfigured market has a wealth of checks and balances to ensure that growth occurs in a measured fashion rather than a dizzy burst.
“Growth is slower than a year ago, but it is more sustainable.”
