Higher long term funding costs explain the change but the overall effect on mortgages is small.
The Bank also says that the flow of net mortgage lending by all UK resident mortgage lenders remained static at £0.7bn in June.
And gross lending for house purchase in July was also similar to June, though approvals for house purchase edged down according to major UK lenders.
Remortgaging figures continued to be weak and as does demand for house purchase.
The report says the availability of mortgage finance continues to hold back demand.
Fixed mortgage rates at 75% LTVs have also fallen since the middle of 2008, though the fall for three and five-year mortgages has been less than for two-year products.