The number of mortgages approved for house purchase jumped to a 17-month high during July.  

Figures from the British Bankers’ Association (BBA) show a total of 38,181 loans were handed out to people buying a home. That was 77 per cent more than in July last year. It is also the highest level since February 2008.

Despite the increase the BBA says the figures are below seasonal expectations. It added that new lending was being offset by people cutting their mortgage debt by stripping out redemptions and repayments.

The organisation says a slower housing market has meant it is taking longer for approvals to work through into gross and net lending figures.

Credit card spending was unchanged from the previous month at £5.8 billion, while repayments were slightly higher at £6.2 billion.

Lending through loans and overdrafts remained weak, with July being the 12th consecutive month in which repayments have outstripped new lending.

Consumers also continued to boost their savings levels, depositing £2.5 billion in July, the second highest figure this year, on a seasonally adjusted basis.