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| Version 0 | Version 1 |
|---|---|
| New low for UK mortgage approvals | New low for UK mortgage approvals |
| (20 minutes later) | |
| The number of new mortgages being approved for house purchase in Britain has dropped heavily for another month. | The number of new mortgages being approved for house purchase in Britain has dropped heavily for another month. |
| The Bank of England said 42,000 homes were approved in May, a 28% fall compared with the previous month and 64% down on a year ago. | The Bank of England said 42,000 homes were approved in May, a 28% fall compared with the previous month and 64% down on a year ago. |
| This is the lowest since the Bank began reporting the figures in 1993 and lower than many analysts' predictions. | This is the lowest since the Bank began reporting the figures in 1993 and lower than many analysts' predictions. |
| Mortgage lending has slumped owing to the credit crunch with institutions reducing their willingness to lend. | Mortgage lending has slumped owing to the credit crunch with institutions reducing their willingness to lend. |
| The number of home loans approved have now fallen for 13 consecutive months, the Bank's figures show. | |
| Housing market | |
| Philip Shaw, chief economist at analysts Investec, described the figures as "terrible". | |
| "It is really symptomatic of what is going on the housing market. The real danger is there is a knock-on effect to consumer activity," he said. | |
| Recent figures from the British Bankers' Association on the number of new mortgage approvals to home buyers also showed a big drop, by 20% in May compared with April. | |
| It blamed tighter lending criteria and a squeeze on household finances for the drop. | |
| The Council of Mortgage Lenders and the Royal Institution of Chartered Surveyors have warned that property sales this year would fall by between 35% and 40%. | |
| The Land Registry revealed last week that the number of house sales slumped by 50% in March compared with the same month in 2007. |