New figures from the Bank of England (BoE) reveal that mortgage approvals fell to a six-month low this March.
There were 122,918 mortgage approvals recorded by the BoE in March, compared to 125,155 in February and 128,188 in January.
September 2016, when 119,565 approvals were recorded in the month, was the last time so few mortgages were approved.
House purchase mortgage approvals fell to 66,837 in March, from 67,936 in February and remortgage loan approvals also slipped to 42,814.
Howard Archer, an economist at IHS Markit, said:
"March's second successive drop in mortgage approvals to a six-month low reported by the Bank of England adds to the evidence that the housing market is being increasingly affected by the increasing squeeze on consumers and their concerns over the outlook."
Jeremy Duncombe, Legal & General Mortgage Club director said:
“Today’s figures highlight the need for support for first-time buyers and home movers across the country.”
Recent research from Legal & General found that a quarter of all UK property transactions are currently being funded with the help of the Bank of Mum & Dad.
ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
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