There has been a slight decline in the level of confidence in the mortgage market, it has been found.

Figures from Legal & General show 15 per cent of mortgage advisors expect the situation to get worse over the next quarter of the year, which is down to a lack of available lending.

"Looking at mortgage business there seems to be ever-increasing signs of a shift towards house purchase transactions and away from remortgage business," said Stephen Smith, Legal & General’s director of housing.

It is believed that house purchases will make up 43 per cent of all mortgage business over the coming quarter, marking a slight increase from 40 per cent in the previous quarter.

Latest statistics from the Council of Mortgage Lenders (CML) show that gross mortgage lending totalled an estimated £16 billion in July, down 36 per cent from £24.9 billion in July last year.

Activity is still subdued on an historic basis, as this is the lowest July lending figure since 2001, the CML noted, and £11 billion lower than the July average over the previous seven years of £27 billion.