Approval rates plummet

Mortgage approval rates in the UK have plummeted, with growth in the market half the average for the first six months of the year, according to the British Bankers'' Association (BBA).

The association said that the number of approvals for first-time buyers and those remortgaging was low in August.

Mortgage approvals for house purchases remained 64 per cent lower than a year ago, according to the BBA, and the number of people remortgaging was 28 per cent lower than last year – the lowest rate since 2001.

BBA statistics director David Dooks said: "Falling property prices, economic pressures on households, tighter lending criteria and anticipation of the government''s announcement on stamp duty all suppressed or delayed demand in August."

He added that the impact of the credit crunch will continue to affect mortgage approval rates in the coming months.

According to the Guardian, property sales in the UK have dropped to their lowest level since 1959.

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