Although the figures were 10% below February’s pre-Covid levels of 73,700 they had risen significantly on the 39,900 in June and were over seven times higher than the 9,300 in May.

Meanwhile, according to the BoE’s monthly Money and Credit report, net mortgage borrowing in July was £2.7 billion.

Although this was higher than the £2.4 billion in June, it was a far cry from the average of £4.2 billion in the six months to February 2020.

The BoE said this increase reflected the hike in gross borrowing to £17.4 billion in July, which was below the February level of £23.7 billion and consistent with the recent weakness in mortgage approvals.

‘Turbo-charged’ demand

There were mixed reactions from different areas of the mortgage and property industry to the rise in borrowing.

Hugh Wade-Jones, managing director of Enness Global Mortgages, said the rate of approvals was ‘astonishing’ given the dire position of the market a few months ago.

“There is no doubt that the huge surge of buyer demand seen once the market reopened has been seriously turbo-charged due to the stamp duty holiday announced shortly after. With the combination of both causing buyers to return to the market at mass.

“As a result, we’ve seen the number of people approved for a mortgage rebound from the depths of pandemic paralysis in May to hit almost the same levels as this time last year in just two months, with the current trajectory sure to return the market to pre-lockdown levels in no time.”

‘Two different realities’

But others were concerned the recovery would be short lived. Indeed, Sam Harhat, head of financial services at Andrews Property Group, said: “Mortgage approvals in July may have been up sharply on June but expect them to tail off again in August to reflect the significant tightening of lender criteria.

“Over the past month or so, it’s as if the property and mortgage markets have been operating in two entirely different realities.

“The demand for property is exceptionally strong, a result of pent-up demand, the low cost of borrowing and the stamp duty holiday, while the availability of mortgage finance has been contracting by the day.

“For 75% loan-to-value (LTV) mortgages and below, there is a huge amount of lender competition, but at higher LTVs finding a lender is like looking for a needle in a haystack.

“Where borrowers see opportunity, lenders see growing economic uncertainty, especially in the Autumn as the furlough scheme draws to a close.”