Mortgage approvals sink to new low

The number of new mortgage approvals for house purchase has fallen to a record low, according to the Bank of England. Last week, statistics from the British Bankers Association (BBA) revealed mortgage approvals by banks had fallen 20% during May to less than 30,000.

The Bank of England’s figures, which include lending by all types of lenders, have fallen to just 42,000 loans for house purchase in May, down 28% since April.

The number of approvals has fallen by 64% since May 2008 as lenders have become increasingly nervous of mortgage customers.

The number of loans for remortgaging purposes fell 10% to 90,000.

The figures are the lowest since the Bank of England began recording mortgage approvals in 1993.