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 £12.5bn, down from July’s total of £14.5bn.
However, the CML said a seasonal fall in lending activity in August was to be expected and underlying lending seemed to have “stabilised” over the summer.
The body’s economist, Paul Samter, said: "The likelihood of a significant pick-up in lending remains weak, but the prospects for wholesale funding markets are improving.
“This 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.”
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.