The number of UK mortgage approvals fell sharply in July to 178,348 from 212,768 in June, a leading industry body found today.
The British Bankers' Association (BBA) said mortgage approvals were down 2 per cent from the same month a year earlier, but the value of all approvals rose by 8 per cent year-on-year.
The average loan approved for house purchase rose to £139,200 sterling from £137,700 in June, the BBA said.
"July is typically a slow summer month for mortgage approvals, so the lower numbers and value of loans approved compared to June were anticipated," said David Dooks, the BBA's director of statistics.
Allowing for this seasonality, today's figures suggest that loans approved for house purchase and remortgaging remain on a constant trend, while demand for equity withdrawal has continued to weaken since the turn of the year, he added.
Figures for mortgage lending continued to suggest that UK housing market activity remains buoyant.
Net mortgage lending in July rose by £5.7 billion, up slightly on June's rise of £5.6 billion and above the average £5.3 billion rise over the last six months.
Gross mortgage lending dropped to £19.1 billion, some 7 per cent below June's record figure of £20.5 billion.