The number of mortgages granted for house purchases in July 2007 stood at 115,000, says the Bank of England’s latest figures.

The figures are higher than the forecasted 110,000 approvals predicted by economists in a Bloomberg poll. The Bank of England also revised its June figure from 114,000 to 115,000 in a further sign that higher interest rates have not yet deterred borrowers from taking out new deals.

Olivier Gilmartin of the Royal Institute of Chartered Surveyors said: “Today’s stronger mortgage lending data will add weight to those on the monetary policy committee who believe that another interest rate rise may be necessary before the end of the year. However, volatility in credit and financial markets will remain the key determinant for the rate setting committee going into the winter period.”