Mortgage approvals are at a 17-month high in the UK.

The number of mortgages approved for house purchase has risen by 77% since July last year, according to the British Bankers’ Association (BBA).

The July figures show increases in the number of mortgage approvals and the amount of new lending, although below seasonal expectations.

A total of 38,181 loans were approved for people buying a home in July, the highest level since February 2008, 17 months ago.

Figures from the BBA also showed a rise in total mortgage advances, with £8.4 billion lent during the month, up from £8.1bn in June.

However, seasonally adjusted net mortgage lending, which strips out redemptions and repayments, grew just £1.6bn ($2.63bn) in July, the lowest increase since October 2000 and compares with a revised £2.2bn increase in June. A year earlier, lending grew £3.7bn.

The BBA also reported that bank lending to non-financial firms fell £4.1bn in July, compared with a £300 million drop in June.

David Dooks, BBA Statistics Director, said: “The numbers of mortgages approved for house purchase each month by the high street banks have continued to recover from last November’s low point, but new lending is largely being offset by repayments, so that net rises remain relatively weak. Unsecured borrowing is subdued, with households focused on managing their personal finances and building up deposits.

“Lending to non-financial companies has contracted over the last year, as would be expected given both the recession and large corporates using the capital markets to raise funds, but amounts outstanding are only 3% lower than a year ago.”

The BBA is the leading UK banking and financial services trade association and represents its members, from 50 countries, on domestic and international issues.