UK mortgage approvals hit an impressive 16-month high in July, up five per cent on figures recorded the previous month, the latest seasonally-adjusted figures from the Bank of England suggest.

The research contradicts recent rumours that activity in Britain’s property market is slowing as a result of political uncertainties, rising property prices and stagnating wage growth.

According to the Bank of England’s data, as many as 129,950 mortgages were granted in July, up from 123,950 in June.

Mortgage approvals for house purchases rose from 65,318 to 68,689, while remortgaging approvals increased from 44,838 to 46,231.

John Eastgate, Sales and Marketing Director at OneSavings Bank, said: “Mortgage approvals have recovered from last month’s lows despite persistent economic uncertainty.

“This is impressive given the combination of inflation and low wage growth, although the low levels of purchase activity should be seen as an indicator of still-fragile consumer confidence.”

Andy Knee, Chief Executive of estate agent LMS, added: “Remortgage approvals soared to their highest level this year as competitive deals offered by lenders enticed homeowners to make the switch.

“Remortgage approvals are also significantly higher than a year ago – the result of months of rock-bottom mortgage rates – which have enabled homeowners to save more on their monthly repayments.”