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Mortgage approvals in the UK rose more than expected  according to new figures from the Bank of England.

38,000 mortgages were appoved in Febuary 2009, up from 32,000 in January.

There was also the largest net repayment of consumer debt since records began in April 1993.

Consumers repaid £245m worth of credit more than they took out in February, having taken on an extra £165m of credit in January.

The mortgage figures suggest that low interest rates and falling house prices may be encouraging people back into the market and indeed that some green shoots maybe appearing.

“February’s household borrowing figures suggest that housing market activity may finally have turned a corner,” said Vicky Redwood at Capital Economics.

“However, approvals have a long way to go before they get to levels that are no longer consistent with falling house prices – in fact they need broadly to double.”

The Building Societies Association  showed that mutual societies had received their highest net deposit levels on record.

Building societies had £1,595m more deposited in them than was withdrawn in February.

“Despite the Bank Rate being so low people are still keen to save, probably in response to the uncertain economic outlook and reduced job security,” said Brian Morris, head of savings policy at the BSA.

Gross mortgage lending by building societies in February came in at £1,214m, compared with £3,861m in the same month of 2008.