Mortgage approval figures at lowest level since last June says bank

MORTGAGE approvals for house purchases have dropped to their lowest level since last June, Bank of England figures have revealed, fuelling predictions of further property price falls. There were 48,986 loan approvals for house purchase in February worth £7.1 billion – almost 9,000 fewer such loans than in January, which was a 25-month high.

The Building Societies Association (BSA), which also released figures yesterday, said new mortgage approvals were up 31 per cent on February last year and up by 29 per cent on the previous month, with £2.2 billion-worth of mortgage approvals in February.

Adrian Coles, director-general of the BSA, said: “Strong financial results from a number of mutual lenders in recent months show that the sector is well positioned.”

Jane Bradley