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Lending in the mortgage market is likely to slump before it picks up again, it has been predicted by an industry expert.

Based on completion figures and early signals, Andy Pratt, chief operating officer at Alexander Hall, predicted that lending in August has probably dipped.

He said: "From the feedback that I am getting from everybody in the market, the applications in August were worse than the seasonally adjusted expectations. I think this is probably the lowest point."

However, latest figures released by the Council of Mortgage Lenders (CML) show that loans sanctioned for house purchases had increased to 56,000 in July, in comparison to 52,000 in June.

It was also found that the number of first-time buyers making their way into the mortgage market had declined to its lowest level since August 2007.

The CML figures further indicated that approved loan applications from first-time buyers had also dropped to from 19,700 in June to 19,400 in July.