Net mortgage approvals increased again in July to total 65,400, new Bank of England (BoE) figures have shown.

The figure, which covers approvals net of cancellations for house purchases, was up by 800 compared to June’s total.

Approvals for remortgages, which only capture remortgaging with a different lender, decreased by 2,700 in July, to 38,900.

According to the latest Money and Credit report from the BoE, net borrowing of mortgage debt by individuals decreased by £900m to £4.5bn in July, compared to a £3.2nn rise of net borrowing to £5.4bn in June.

Figures also revealed that the annual growth rate for net mortgage lending slightly rose from 2.8% to 2.9% in July, while gross lending increased to £24.3bn, up from £24bn in June.

Head of mortgages and protection at Just Mortgages, Ben Allkins, commented that while net borrowing had slowed in July, it was “encouraging” to see another monthly increase in mortgage approvals.

“There’s no question that July marked the usual start of a quieter summer season, although positive movement from lenders in anticipation of the August base rate cut certainly gave brokers a great headline to proactively share with clients and encourage activity,” Allkins said.

Octane Capital CEO, Jonathan Samuels, added: “The overarching air of stability that has enveloped the mortgage market landscape over the last year or so highlights the strength of appetite amongst the nation’s homebuyers and it’s this demand which is fundamental to fuelling the wider performance of the property market.

“At the same time, we know that many borrowers fall outside the parameters of the mainstream market, whether due to complex circumstances, time pressures, or specific funding needs. In these instances, specialist finance is proving invaluable, offering the agility and tailored solutions required to keep transactions moving, for example, in the case of a chain-break.”

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