The housing market in the UK remains stagnant, with the mortgage market continuing its slide with a drop in the number of new mortgage loans approved by High Street banks.
According to the British Bankers’ Association (BBA), the number of mortgages approved for home purchases dropped by 877 to 33,698 approvals in July compared to the previous month, becoming the second monthly decline in a row.
Meanwhile, gross mortgage lending by major banks was below the average rate of the last six months, at £8.4 billion in July. Currently, many people are looking to pay their mortgage obligations, hoping to benefit from the low interest rates. Net mortgage lending rose by £1.95 billion, the second-lowest increase since February 2001.
David Dooks, statistics director of BBA, said that “gross mortgage lending remains stable, although demand for mortgages continues to be subdued. The greater availability of properties for sale and slowing house price growth have not yet fed through to increased house purchase approvals.”