July mortgage approvals decline

Mortgage lending dropped in July to the lowest level since February, according to new research.

Just under 181,933 mortgages were approved last month, representing a seven per cent drop on June, as borrowers waited for the August cut in interest rates.

Remortgaging loans fell nine per cent on last year's figures, and house purchase loans dipped six per cent year-on-year.

BBA director of statistics, David Dooks, explained: "July's rise in net mortgage lending was the weakest since December 2001 but the weakness resulted largely from higher than usual levels of redemptions, particularly relating to maturing fixed rate loans."

He added: "Together with relatively slow approvals, it reiterates the subdued mortgage environment of late.

"More cautious consumer sentiment, in line with reports of weaker retail sales, was also reflected in lower demand for personal loans and very modest credit card borrowing"

Loans and overdraft lending climbed £0.3 billion, while credit card borrowing ended at +£0.1 billion.