Though the profit margins of the banks have touched record high levels, however, for the home owners the mortgage drought does not seem to be ending.

The scenario has also been confirmed by the mortgage brokers, since they also approved that the mortgage situation was extremely `tough' and arduous for the home buyers.

It is believed that a fall has been seen in the gross mortgage lending by 3% and it touched £13.6 billion last month, as compared to £14 billion in July last year. Though the banks are being pressed to start lending again, the situation of drought persists.

Commenting on the prevalent scenario, Michelle Slade, Spokesperson for Moneyfacts. co. uk said, "Mortgage rates are falling, but only a fraction of the reduced funding cost is being passed on as lenders continue to repair their balance sheets. Borrowers will be angered that they continue to pay the price for mistakes made by lenders, particularly those who have accepted government funding".

The figures reveal that though the level of lending has risen 5% from June this year and are in tune to meet the target of £140 billion for the year of the Council of Mortgage Lenders, it is still drastically below the desired figure of £362 billion lending in 2007.