Home purchase approvals fell 10% year-on-year last month, suggesting that the interest rate cut in August is yet to boost lending, according to the British Bankers’ Association.

The trade body says there were 74,320 mortgage approvals in October, slightly up on the 72,224 approved in September and above the six-month average of £73,451.

Most home loans were for house purchases at 40,851, followed by 24,622 for remortgages and 8,847 for other borrowing.

The value of home loans totalled £12.5bn up from £11.9bn in September and slightly above the six-month average of £12bn.

Dr Rebecca Harding, BBA chief economist, said: “Mortgage approvals ticked up a little October.

“There has only been a relatively modest increase in activity since the Bank of England cut rates in August.”