According to recent Bank of England data, home mortgage approvals increased for the third month straight.  July posted more than 49,200, which was up from 48,500 in June.  The Central Bank figures also displayed a modest increase year on year, from 48,722 last July.  Remortgage approvals also increased in a year on year comparison, up by almost 15% to 30,810 during the month of July.  Remortgage application approvals during July were flat compared with other months, at 30,790.  The previous six month average is 31,340.

Overall, mortgage approvals totaled 100,320 in July.  This is an increase from a little more than 99,500 in June.  In a year on year comparison, approvals were up during this July by a marginal 1%.

The increase in mortgage lending finished the month running behind the six month average increase of 0.9 billion pounds.  July finished with mortgage lending increasing by 0.7 billion pounds.  The total for the month of July was 11.3 billion pounds, which is consistent with the previous six month average.

Richard Sexton, director of e.surv chartered surveyors, commented on the slight amount of growth in June compared with July, saying: "July's weak growth figures confirm that the growth we saw in June was just a flash in the pan. The mortgage market is in a state of rigor mortis and is unlikely to revive until lenders can reach comfort about their core capital."

He added: "Less than 10% of approvals in July were for those needing high LTVs, compared to over 20% in July 2007.

"Restrictive rates on high LTV products are locking the majority of first-time buyers out of the property market. The autumn will see an even more subdued trend as lenders focus on recouping equity and addressing threats to their balance sheets."