Gross mortgage lending in the UK has fallen by 6% to an estimated GBP32.2 billion in August, compared with GBP34.1 billion in July, according to the latest figures from the Council of Mortgage Lenders.

Michael Coogan, director general of the Council of Mortgage Lenders (CML), said: Lending fell slightly in August, but was still at very high levels.

The CML said that reduction in available funding may lead to reduced supply of lending, but the recent gesture from the Bank of England to provide emergency help may aid in restoring the availability of funding more quickly than would have otherwise been the case.

Mr Coogan said: The events of the past week have shown us how very quickly situations can change. Even after the good news on inflation falling back, the fed’s rate cut, and the Bank of England’s support for three-month funding, it is not a given that the bank will follow suit on cutting rates. It makes sense for consumers to continue to plan for rates at or about their current levels for the forseeable future. We are not out of the woods yet.