Jun UK Mortgage Approvals Hits Series Low
LONDON (Dow Jones)–U.K. mortgage approvals slumped to a fresh series low in June, while net lending also dropped sharply as the credit crunch continues to weaken housing market activity, data from the British Bankers’ Association showed Wednesday.
Approvals for house purchases fell to 21,118 in June from a downwardly revised 27,449 in May, the lowest number since records began in 1997, the trade association said.
**That is 67% less than in June 2007 **and way below the average of GBP5.0 billion for the past six months.
The data also showed net mortgage lending tumbled to its weakest level since December 2001, dropping to GBP3.8 billion from GBP4.5 billion in May.
Gross mortgage lending dropped to GBP15.1 billion in June from GBP15.9 billion in May, 23% weaker on the year.
“Another record low number of mortgages approved by the banks for house purchases means that the whole market is likely to be at its least active since the early 1990s,” said David Dooks, BBA statistics director.