There was a slight drop in net mortgage borrowing this July, Bank of England (BoE) figures show, moving from £5.3bn in June to £5.1bn the month afterwards.

This is still above the pre-pandemic average of £4.3bn in the year to February 2020, however, and the data also shows that gross lending increased in the month to July 2022, rising from £24.6bn to £26.1bn.

The BoE says that house purchase numbers moved up in July, from 63,200 to 63,800, and from £14.8bn in value to £15.3bn.

And remortgage approvals spiked, going from 43,300 to 48,400 – a change in value from £14.8bn to £15.3bn.

SPF Private Clients chief executive Mark Harris comments: “The rate paid on new mortgages rose by 18 basis points to 2.33 per cent in July, the highest since June 2016, although the pace of repricing seems to have subsided. It is no surprise that the number of borrowers remortgaging rose as homeowners try to secure a rate before they become even more expensive.

“Lenders have money to lend and remain keen to lend it, although volume management is the name of the game. The market was a little quieter in July, a pattern since repeated in August, and it will be interesting to see how September turns out.”

Meanwhile, Loan.co.uk chief executive Paul McGerrigan says: “An increasing trend sees borrowers breaking shorter term fixed rate deals, paying ERCs to fix a rate now for longer period, to give them certainty in their budgeting.

“While this may be good for some borrowers it will not be right for all. It is an exceptionally tricky time for people to make key financial decisions and they are having to make tough calls.”