Mortgage approvals hit new low
The number of new mortgages being approved for house purchase hit a new low in April, according to figures from the Bank of England.
Just 58,000 such mortgages were approved, the lowest since the Bank began reporting the figures in 1993.
That was 8% fewer than in March and nearly half the level of lending that was approved a year ago.
Mortgage lending is expected to slump this year because of the credit crunch and a shortage of finance to lend.
Both the number of loans approved, and the amount of money offered to borrowers, has now fallen for 12 months in a row.
UK property prices drop 2.4% in May 08
UK house prices dropped by 2.4% in May, according to a report by the Halifax, Britain’s biggest mortgage lender.
That pushed prices 3.8% lower than a year ago and means that the price of the average home fell to £184,111.
The Bank of England said on Thursday it was leaving interest rates unchanged at 5%, despite calls from estate agents and construction firms for a cut.
Many mortgages have been withdrawn and available rates have risen in spite of three rate cuts since December.