Number of new mortgages in UK hits record low

The number of mortgages approved for house purchase in the UK dived by 23% during June to hit a new record low, figures showed today.

Just 21,118 loans were approved for British people buying a property during the month, 66.9% fewer than in June last year and the lowest figure since the British Bankers' Association began collecting the data in 1997.

The amount advanced by lenders also continued to fall during the month, with net lending, which strips out redemptions and repayments, dropping to just £3.85bn (€4.8bn), its lowest level since December 2001.