Mortgage approvals by high street banks for house purchase rose 11% on a yearly basis in July.

According to the British Bankers’ Association, there were 46,033 approvals for house purchase.

The BBA also reports a 29% annual rise in remortgage approvals to 24,400 – the highest number for four years – as borrowers switched to new deals ahead of a rise in interest rates.

Both sets of figures were also up on June’s numbers with overall approvals standing at 77,451, up from 76,104.

The UK mortgage industry has also been given an unlikely boost by the Chinese financial crisis.

Richard Woolhouse, the BBA’s chief economist, said: “In July people were concerned about an interest rate rise and I think this led to a rush in remortgaging.”

“Everything that has happened in China this week puts the likelihood of that rise back two to three months.

“But even if rates do go up in the near future I don’t think mortgage rates will go up as much and in any case this won’t impact much on people’s decision to buy a house.”