mortgage lending looks likely to remain strong after record amounts were advanced last month.

The British Bankers' Association said total lending by the major banks was £16.9bn during the month, while net lending, which takes into account redemptions and repayments, reached £5.51bn - the highest figure since November last year.

Approvals for new mortgages were also strong, with 281,500 home loans approved, ten per cent more than in the previous month and 19 per cent more than in July last year.

In terms of the value of loans, a record £10.72bn was approved for people buying a new home, nearly 14 per cent higher than during June, while £1.97bn-worth of loans were approved for people cashing in on equity in their houses - a 40 per cent increase on the same month last year.

BBA executive director Roger Brown said: "Both gross and net mortgage lending were stronger in July and the approvals data for the month were robust.''

But he said the value of mortgages approved for house purchase were only 14 per cent higher than the previous month's, while in June the total had been 22 per cent higher than in May