According to Bank of England's latest monthly report, 'Trends in Lending July 2009' demand for mortgages increased recently.

In May 2009, the net mortgage lending figures showed the lowest flow since April 1993. However, in June the major UK lenders reported that their flow of net mortgage lending increased a little.

They also reported a further rise in approvals for house purchase in June, suggesting that mortgage lending for house purchase may continue to strengthen in coming months.

Some major UK lenders have reported that signs of stabilisation in housing market activity and prices, and the margins prevailing on higher LTV products, have slightly increased their appetite to lend at higher LTVs.

The report covers officially data up to May 2009 and intelligence gathered up to June 2009.