Mortgage approvals have hit a new low, dropping 67% over the past twelve months, according to figures from the British Bankers Association (BBA).
Personal deposit growth has picked up as UK consumers attempt to pay down debts and save as the economic outlook worsens.
The number of loans approved for house purchase in June fell to just 21,118, down from 27,499 in May and 67% lower than in June 2007.
Remortgaging activity held-up better, with the number of loans falling by 3,000 to 59,637, down 13% since June last year.
David Dook, director of statistics at the BBA, comments: “Another record low number of mortgages approved by the banks for house purchase means that the whole market is likely to be at its least active since the early 1990’s.
“However, even in this rapidly slowing market, net lending has still grown by 12% over the past year and there continue to be significant numbers of people remortgaging with the banks.”
Net lending increased by £3.8bn, compared with £4.5bn, while consumer credit growth also declined, rising just £0.3bn, compared with £0.4bn last month.
Personal Deposit growth increased again after slowing in May, up £2.2bn in June.
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