The value of UK mortgage approvals for home purchases fell to the lowest level in more than 20 years in May, according to data from the Bank of England, as more cautious lenders restricted products with higher loan-to-value (LTV) ratios.
It is yet another sign of the slowdown in housing market activity in the wake of the pandemic. House prices declined by 0.1 per cent in June compared with the same time the prior year, according to the Nationwide House Price Index, the first annual decline since 2012.
Around £7.1bn in mortgages for new home purchases were approved in May, down almost a quarter on April, while the number of approvals fell to a record low of 9,300. That was almost 90 per cent below the February level and around a third of the trough during the financial crisis in 2008.