The credit crunch is continuing to squeeze potential homebuyers.
The number of mortgages approved for home purchases rose slightly in September, although numbers remain low, according to the British Bankers Association (BBA).
Its figures show that 23,422 homebuyer loans were approved last month, up from to 21,342 in August. However, September's total is still 56.6 percent lower than the same month last year when 53,422 mortgages were approved.
There was also a slight increase in the number of people remortgaging last month, with 51,523 homeowners taking out new deals compared to 47,260 in August. But again, levels remained subdued when last September's figures are taken into consideration. Indeed, remortgaging approvals were down 25 percent on the year.
Commenting on the figures, the BBA said they come as no surprise. "Compared to a year ago, the mortgage environment has changed significantly, with supply restricted as a consequence of the situation in financial markets and demand at a much reduced level," said statistics director David Dooks.
September saw net mortgage lending rise by £3.6 billion - which although higher than August's figure was below average for the previous six months.
HM Revenue & Customs data shows that house sales have fallen at a similar pace to mortgage approvals, dropping 53 percent over the last 12 months.
