The Bank of England has reported that net borrowing of mortgage debt by individuals decreased slightly to £5.1 billion in July, from £5.3 billion in June.

This is above the pre-pandemic average of £4.3 billion in the 12 months up to February 2020.

Gross lending increased to £26.1 billion in July from £24.6 billion in June, and gross repayments increased to £20.8 billion, from £19.4 billion.

Approvals for house purchases, an indicator of future borrowing, increased slightly to 63,800 in July, from 63,200 in June, which is below the 12-month pre-pandemic average up to February 2020 of 66,800.

Approvals for remortgaging (which only capture remortgaging with a different lender) increased to 48,400 in July, from 43,300 in June. This also remains below the 12-month pre-pandemic average up to February 2020 of 49,500, however.

Steve Seal, CEO, Bluestone Mortgages, said: “Despite inflation running at historic highs, the homeownership dream lives on. We’re seeing an increase in gross mortgage lending as people flock to secure a fixed rate mortgage or remortgage to protect themselves against further rate rises. However, as the cost of living crisis continues to squeeze the pockets of many, we expect to see a growing cohort of customers locked out of the mainstream lending market, and turning to specialist lenders for support.

“For those who find themselves in this situation, it’s important to remember that hope is not lost. Specialist lenders are on hand to support customers’ evolving needs and have a range of solutions to help them climb onto or up the property ladder. Ultimately, all lenders have the responsibility to ensure customers are pointed in the right direction so that each and everyone has the opportunity to make their homeownership dreams come true.”