Mortgage activity was back up in July, according to the latest National Mortgage Index from Mortgage Advice Bureau (MAB).

Using data from more than 500 brokers and 800 estate agents, the survey found application activity for both purchase and remortgage activity rose in July, up 14.6% from June.

There was renewed appetite among borrowers in July, following an increase in QE and more competitive mortgage products on the market.

The average loan-to-value on purchase applications rose to 70.4% in July from 68.2% in June, halting six straight months of falls. As a consequence the average deposit on applications fell to £66,832 from £67,512 in June.

The rate on the average two-year fix fell from 4.72% in June to 4.68%, and was joined by the average five-year fix which dropped from 4.9% to 4.87% in July.

“Mortgage activity levels are still volatile from month to month, and this pattern looks set to continue for some time to come,” said Brian Murphy, head of lending at Mortgage Advice Bureau.

“Application levels increased significantly last month following the washout in June, but they were still below the peak we saw in May.

“Last month saw lenders a rash of competitive products launched as lenders revised products in advance of the ‘funding for lending’ scheme. We hope this will stimulate more lenders to increase lending targets and launch more competitive products in the coming months.”

Murphy added: “The fantastic London Olympics in August will create a temporary halo effect across many industries, but as mortgage activity traditionally slows during this month we are expecting a return to stability this month rather than another big increase.”