The number and value of mortgages taken out by both home-buyers and those re-mortgaging fell in July 2007, according to the Council of Mortgage Lenders (CML).

There were 94,000 loans for house purchases totalling £14.8bn in July, and 92,000 re-mortgages totalling £11.5bn.

The number of loans to first-time buyers fell by 7% from June to 32,400, and the value fell by 4% to £4.4bn. Affordability for first-time buyers continued to worsen, with the typical first-time buyer income multiple rising to a record 3.39 in July, up slightly from 3.37 in June. First-time buyers taking out loans in July typically committed 19.7% of their income to pay their mortgage interest. Fixed rates are still the most popular mortgages, accounting for 79% of house purchase and re-mortgage loans.

Michael Coogan, CML director general, said: “A slight fall in lending between June and July has emerged for the third year in a row, so of course we cannot read too much into a single month’s figures. But the long anticipated slowdown in the housing and mortgage markets may now be beginning to materialise.”