Figures from Council of Mortgage Lenders show a decline on lending in July but underlying lending has 'stabilised'

Mortgages fell 13% in August compared to the previous month, according to the latest figures from the Council of Mortgage Lenders.

The body said total mortgage lending in the UK amounted to about 拢12.5bn, down from July鈥檚 total of 拢14.5bn.

However, the CML said a seasonal fall in lending activity in August was to be expected and underlying lending seemed to have 鈥渟tabilised鈥� over the summer.

The body鈥檚 economist, Paul Samter, said: "The likelihood of a significant pick-up in lending remains weak, but the prospects for wholesale funding markets are improving.

鈥淭his could result in a gradual easing in constraints on the supply of funding over time.

"However, demand from consumers and a prudent approach to lending criteria are likely to mean that the market remains subdued.鈥�

Meanwhile, the Bank of England has reported that lenders are now approving about 80% of mortgage applications, up from 70% at the beginning of the year.

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