HOME owners locked themselves into attractive mortgage deals in the weeks leading up to August's Bank of England base rate rise, according to a household finance report.

Gross mortgage lending for the total market in July stood at £24.6 billion - 7.6 per cent higher than a year ago, figures from trade association UK Finance show.

The Bank of England base rate increased from 0.5 per cent to 0.75 per cent on August 2 following speculation that rates would be hiked, pushing up costs for some mortgage borrowers on variable rate deals.

Peter Tyler, director at UK Finance, said: "July saw steady growth in gross mortgage lending, driven largely by re-mortgaging as home owners locked into attractive deals in anticipation of the recent base rate rise."

He said the broader economic outlook "remains mixed", with households continuing to see their incomes being squeezed by rising inflation.