Its figures showed that house purchase approvals were up modestly year-on-year, from 48,722 in July 2010, and showed a notable increase on the previous six-month average of 46,822.
The number of approvals for remortgaging also increased, up 14% year-on-year to 30,810 in July.
However, remortgage approvals in July were almost static compared to the previous month’s total of 30,790 and were down on the previous six-month average of 31,340.
Meanwhile, the number of approvals for other purposes continued to remain around the 20,000 mark, totalling 20,271 in July compared to 20,217 in June and the previous six-month average of 20,375.
Year on year, approvals for other purposes fell 14%.
Total mortgage approvals amounted to 100,320 in July, up from 99,507 the previous month and 99,893 in July 2010.
Mortgage lending rose by £0.7bn in July compared to the six-month average increase of £0.9bn, with the annual and three-month growth rates both rising by 0.1% to 0.8% and 0.5% respectively.
Gross mortgage lending totalled £11.3bn in July, in line with the six-month average, with repayments amounting to £11.2bn, up £0.1bn on the previous six-month average.
Richard Sexton, director of e.surv chartered surveyors, said, “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 said that, while lenders have offered “tantalising” deals over summer, they have targeted low LTV borrowers.
Sexton said: “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.”
