The figure was 14% higher than June lending, confirming the housing sector as one area of the economy maintaining strong growth while others languish.

There were 104,713 mortgage approvals in July, up 1.3% on June while the value of mortgages approved rose 1.27% to £6.2bn.

The average loan value amongst July approvals was £59,000.

Not just refinancing

Earlier this month, seasonally adjusted net lending figures showed a record rise of £1.13bn in July indicating the climb in mortgage lending activity was not just due to refinancing of existing loans.

Existing borrowers shopping around for a better mortgage deal continue to be a major factor of overall mortgage lending from month to month.

Lending reflects not just refinancing

Tim Sweenery, diector-general of the BBA, said the record highs showed that the home lending market continued to be buoyant.

"Lending was by no means confined to the substantial remortgage markets either, with fixed rate lending probably above the 70% share it accounted for in the second quarter.

Two-speed economy

"For the second month running, the number and value of loan approvals were at record levels," Mr Sweeney said.

The figures provide more evidence of a 'two-speed' British economy with some areas, like housing and services, experiencing continuing growth while others, like manufacturing, slip into recession.