Net lending to Britons dropped by £0.6 billion in July as people repaid more than they borrowed.

People repaid £0.4 billion on mortgages and £0.2 billion on personal loans plus credit cards more than they borrowed during the month.

Homeowners repaid £418 million more than they borrowed during July.

In total Britons paid £635 million more than they borrowed during the month of July.

The number of mortgages approved for the house purchase rose for the sixth month in a row to around 50,123.

The fall in net lending was the first since the Bank of England began collecting data in 1993. The outcome was the result of a fall in both mortgage lending and unsecured credit. Soaring rate of unemployment has also been compelling people to reduce their debt.