Gross mortgage lending fell last month to an estimated £10.5 billion, the Council of Mortgage Lenders (CML) has reported.
Lending fell by 14% from £12.2 billion in December but was 10% higher than the total of £9.5 billion in January 2011.
It was the sixth month in a row of higher year-on-year lending.
Bob Pannell, CML chief economist, said: “Housing and mortgage market sentiment has improved a little over recent weeks.