Gross mortgage lending for the total market in July was £24.6bn, some 7.6% higher than a year earlier.

According to UK Finance's Household Finance Update for July, the number of mortgage approvals by the main high street banks in July fell by 0.8% compared to the same month a year earlier. Within this, remortgaging approvals were 2.8% higher than for the same period a year earlier. There was a fall in house purchase and other secured borrowing of 0.6% and 11.7% respectively.

Credit card spending was 8.1% higher than a year earlier, with outstanding levels on card borrowing growing by 5.3% over the year. Outstanding overdraft borrowing was 4% lower compared to the same time last year.

Personal deposits grew by 1.2% in the last 12 months. Deposits held in instant access accounts were 3.8% higher than a year earlier.

UK Finance director Peter Tyler commented said: "July saw steady growth in gross mortgage lending, driven largely by remortgaging as homeowners locked into attractive deals in anticipation of the recent base rate rise.

"Card spending has also strengthened, reflecting increased expenditure during the holiday period and an uplift in retail sales due to the World Cup and warm weather. However the broader economic outlook remains mixed, with households continuing to see their incomes being squeezed by rising inflation. This may explain the shift towards deposits held in instant access accounts, as consumers opt to keep their money close to hand.”

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