Mortgage borrowing edged up to £4.4bn in August, still below the six-month average of £5.2bn, according to the latest monthly banking statistics from the Bank of England.

The Bank’s August money and credit report found that net borrowing of mortgage debt by individuals increased to £4.4bn in August, from £4.1bn in July.

The annual growth rate for net mortgage lending remained unchanged at 3.6% in August.

Secured gross lending decreased to £23.6bn in August, down from £25.3bn in July, and below the six-month average of £26.5bn.

Repayments decreased slightly in August to £20.4bn, from £21.1bn, below the six-month average of £21bn.

Net mortgage approvals for house purchases, net of cancellations, fell to 54,900 in August, from 55,900 in July.

The figure is often seen as an indicator of future mortgage borrowing demand.

Remortgaging decreased to 34,000 in August, from 34,600 in July. The Bank’s figures only cover remortgaging with a different lender.

The ‘effective’ interest rate, or the actual interest paid, on new mortgages rose to 4.6% in August, from 4.45% in July.

The rate on the outstanding stock of mortgages was 4% in August, up from 3.97% in July.

Jason Tebb, president of OnTheMarket, said: “Perhaps unsurprisingly, given the distractions of the particularly hot summer, approvals for house purchases dipped again in August, following July’s fall. They remain below the previous six-month average as ongoing political and economic uncertainty also has an impact on buyer and seller decision-making.

“With the effective interest rate on newly drawn mortgages also increasing again, to 4.6% in August from 4.45% in July, the impact of higher borrowing costs is making itself felt. The Bank of England’s decision to hold base rate steady at recent meetings will help calm concerns assuming this approach continues into the autumn.

“The introduction of a government-backed scheme to help first-time buyers in the budget could provide some much-needed impetus for the housing market, although indications show it would be restricted to new homes only. Nonetheless,we await the details with interest.”