UK Finance has reported that gross mortgage lending for the total market in August was £24.1bn, 1.2% lower than a year earlier.

The number of mortgage approvals by the main high street banks in August rose by 0.7% compared to the same month a year earlier.

Within this, remortgaging approvals were 9.2% higher than for the same period a year earlier. There was a fall in house purchase and other secured borrowing of 4.3% and 2.1% respectively.

Credit card spending was 7.6% higher than a year earlier, with outstanding levels on card borrowing growing by 5.8% over the year. Outstanding overdraft borrowing was 7.2% lower compared to the same time last year.

Peter Tyler, director at UK Finance, said: “Remortgaging continued to dominate in August, as homeowners took advantage of a competitive market to lock into attractive deals.

“Growth in card spending remained fairly strong, reflecting the boost to retail sales from the warm weather as well as the growing use of credit cards as a preferred means of payment.

“However, the overall economic outlook remains mixed as household incomes continue to be squeezed by rising inflation.”

Jeff Knight, marketing director for Foundation Home Loans, added: “First time buyers have been benefiting from some of the lowest rates despite the recent hike of the base rate from the Bank of England. Alongside remortgaging activity, this has kept the market moving along as we head into the Autumn months.

“For landlords and consumers alike, the growing number of specialist offerings catering to the more complex cases has certainly kept things moving. Evolving products in this space mean that even those with previous challengers when it comes to credit checks can be hopeful of securing finance.”