The five increases in the base rate level of interest over the past year have filtered through to the mortgage market, it has been reported.
According to the Building Societies Association (BSA), gross advances for July 2007 amounted to £4,465 million in July 2007, down from the £4,888 million recorded in the same month of 2006.
Net advances were also lower than they were a year ago, registering £598 million against £1,662 million 12 months ago, the organisation added.
Building societies also had net receipts of up to £723 million in July 2007 compared with £444 million a year previously.
"Five interest rate rises in the last year [have fed] through to the market," said Adrian Coles, director general of the BSA.
"The strong start to the year has fallen away, with gross lending in July representing an 8.7 per cent decrease."
Currently, the base rate of interest in the UK stands at 5.75 per cent - its highest amount for over five years.
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