2 Jun

New mortgage approvals falling, BoE figures reveal

New mortgage approvals falling, BoE figures reveal

The property market has taken another knock as the Bank of England (BoE) revealed mortgage approvals have declined further.

April figures saw home lending at its lowest since the Bank began reporting the statistics in 1993.

Just 58,000 mortgages were approved, down eight per cent from March and the 12th consecutive month there has been a drop.

The amount of money offered to borrowers has also declined monthly since April 2007, contributing to an even slower overall growth rate. Beginning the year at 9.1 per cent, the 12-month rate now lags at just 8.4 per cent.

With home-buying activity currently depressed, remortgaging figures remain high. In April 106,000 were approved, up from 98,000 in March and the previous six month average of 102,000.

Commenting on the Bank of England figures, Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors, said: "The latest weak data on mortgage approvals highlights the continuing problems facing borrowers trying to secure finance to purchase property."

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