Approvals fell by over a third in the wake of the mini-Budget, while arrears rose.
The value of new mortgages agreed in the last three months of 2022 (£58.4 billion) was 33.5% less than the previous quarter, said the Bank of England.
This was also 24.5% less than a year earlier.
The Bank noted that it was the lowest level of mortgage approvals since 2015, if you exclude the period of the onset of the pandemic and first lockdown, when the housing market was all but closed.