The cautious return of homebuyers continued to prop up mortgage lending in August, despite a fall in the number of borrowers remortgaging.

There were 52,700 home loans approved for purchases in August, a 29 per cent rise year on year, according to the Council of Mortgage Lenders (CML), the trade body. The figures represented a seasonal fall of 5 per cent on the previous month.

First-time buyers were granted 19,200 home loans, a 22 per cent increase on August 2008.

Paul Samter, economist for the CML, said: “It will be a drawn-out recovery process, with seasonal ups and downs, but house purchase activity is now on a firmer footing.”

Gross mortgage lending, which includes home purchases, remortgaging and buy-to-let lending, fell 36 per cent from a year ago to £12.3 billion, the CML figures showed. Remortgage activity remains weak, with 32,000 applications approved in August, a fall of 22 per cent on July and 57 per cent down on August 2008.

Homeowners coming to the end of mortgage deals are opting to sit on ultra-low standard variable rates (SVRs), pegged to the Bank of England base rate. Many are putting off securing a new deal until there is a threat that interest rates could rise.