24 Jun

Mortgage approvals hit record low

Mortgage approvals hit record low

The number of mortgages approved for house purchase fell to a record low of £4.3 billion in May, according to new figures from the British Bankers' Association (BBA).

Overall gross mortgage lending stood at £16.8 billion last month, which is 15.9 per cent lower than at the same time last year. Mortgage approvals for house purchase were down 56.8 per cent year-on-year.

By contrast, approvals for remortgaging remained steady and took a record 53 per cent share of all mortgage approvals.

BBA statistics director David Dooks blamed the depressed data on tighter lending conditions and the rising prices that are squeezing many households.

"Only remortgaging business is holding up, where people need or want to take advantage of deals with other lenders," he said.

Yesterday, HM Revenue and Customs revealed that the number of housing transactions fell by nearly 37 per cent year-on-year in May.
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