Mortgage borrowing by individuals fell sharply in July, according to the latest monthly banking statistics from the Bank of England.

Net borrowing of mortgage debt fell to £4.3 billion, from £7.7 billion in June. It was also below the previous six-month average of £5.3 billion.

Net mortgage approvals for house purchases fell to 56,100 in July, from 58,200 in June.

The figure was below the average of around 60,800 over the previous six months. Approvals for remortgaging increased to 34,500 from 34,100, not including product transfers.

Secured gross lending decreased to £25.9 billion in July. It was £26.9 billion in June and slightly below the six-month average of £26.4 billion.

Mortgage repayments increased slightly to £21.3 billion, from £21.2 billion in June. They remained above the six-month average of £20.8 billion.

The annual growth rate for net mortgage lending was unchanged at 3.6%.

The effective interest rate on newly drawn mortgages increased to 4.45% in July, from 4.35% in June. The rate on the outstanding stock of mortgages also increased, reaching 3.97% from 3.96%.