A new low in mortgage approvals has been marked by a monthly survey from banks.
The amount of mortgage approvals granted by UK banks has hit a new low, figures have suggested.
According to the British Bankers' Association (BBA), the amount of home loans approved stood at 66.4 percent below the year-ago figure in June, the lowest since records began in 1997. However, the amount of money lent by banks was found to have increased by 12 per cent over the same period, to hit £3.8 billion.
This upturn is partially explained, in turn, by the fact that 55 percent of mortgages granted were for people who already owned a property and wished to stay in it - a record high, which signifies that many potential movers are preferring to sit tight in the current market conditions.
The research shows that lenders are continuing to tighten their loans criteria, and that many buyers have been put off from purchasing property due to reports of falling prices.
Commenting on the results, the BBA's David Dooks said: "Another record low number of mortgages approved by the banks for house purchase means that the whole market is likely to be at its least active since the early 1990s."
Other figures released by the BBA painted a similarly gloomy picture of consumer activity as a whole, with credit card, personal loan and overdrafts all proving weak in June. "The pressure on household finances is being reflected in subdued consumer borrowing," Mr Dooks added.
