Mortgage approvals continue to fall

Mortgage approvals for new home purchases fell last month, reaching their lowest level since 1995, according to new figures published today (January 30th).

The Bank of England data indicated that 73,000 new home loans were approved in December, the lowest monthly total since July 1995 and a ten per cent decline on the previous month.

While the figures did show an increase in homeowners taking out remortgage deals, both equity release and lifetime mortgages experienced a decline.

In a statement, the Royal Institution of Chartered Surveyors commented on the figures: "These sharply lower figures are consistent with the negative sentiment expressed by chartered surveyors.

"The combination of reduced loan to value ratios and the more discriminating policy of lenders is clearly having an impact on the availability of finance for property purchases."

"There are few signs of immediate relief on this front and those attempting to get on the property ladder are likely to find the environment challenging for the foreseeable future."

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