Overall mortgage lending reached Â£30.4 billion during July, down six per cent from the all-time record of Â£32.4 billion in June, says Council of Mortgage Lenders (CML) figures.
The figure is still the highest July result ever recorded, however, 19 per cent up on the Â£25.5 billion of lending seen during the same month of 2005.
“Another month, another record lending figure,” said CML director general Michael Coogan.
“Seasonal factors are continuing to support housing transactions and buoy house price growth. Bank of England approvals data shows that there is a strong appetite among borrowers for remortgages and other types of loan.
“But the timing of the Monetary Policy Committee’s interest rate rise a fortnight ago caught some people by surprise, and its effect is not reflected in today’s figures.
“So, with financial markets suggesting the possibility of at least one more rate rise before the end of the year, we expect to see more subdued lending over the coming months.”
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