THE number of mortgages approved fell for the third month in a row during August, providing further evidence the property market has turned.
The British Bankers' Association (BBA) said only 64,000 loans were approved for house purchase during the month, the lowest figure since January and 22 per cent below the level for August last year.
At the same time, the average value of a mortgage taken out by someone moving home was down for the second consecutive month at £112,100, compared with a high of £116,500 in June.
There were also falls in the number of loans approved for people who were remortgaging, with the level six per cent lower than during August last year, while equity release loans fell by 17 per cent.
The BBA also reported a slowdown in total mortgage lending last month, with the major banks advancing £16.61bn during the month, nearly £1.5bn less than during July.
Net lending, which ignores redemptions and repayments, fell to its lowest level since June 2002 at £4.4bn, well down on the recent six-month average of £5.56bn.
David Dooks, BBA director of statistics, said: "The slowing down of net mortgage lending in August looks set to continue in the next couple of months.
"A further weakening in the number of loans approved - particularly for house purchase and equity withdrawal - in August indicates that households' appetites for secured borrowing is moderating."
The figures add to the mounting evidence that the booming property market is finally slowing.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article