The number of mortgages approved by British banks fell for the fifth consecutive month in June – a new nine-month low, new figures show.
According to UK Finance, the new trade association which has replaced the British Bankers’ Association, there were 40,200 mortgage approvals in June.
Remortgaging approvals of 25,361 were down on the monthly average of 26,127 over the previous six months and 5% lower than in June 2016.
Gross mortgage borrowing totalled £13.0 billion in June, up since 6% from a year ago.
The housing market has come under increasing pressure in recent months from the growing squeeze on incomes and affordability pressures.
Experts believe the ongoing uncertainty surrounding Brexit compounded by the snap election have also contributed to the slowdown in the housing market.
Since last year’s Brexit vote, consumers have faced a loss in spending power as a result of rising inflation following a fall in the pound.
Combined with slowing wage growth, households are beginning to feel the pinch as their disposable incomes start to fall.
Brian Murphy, head of lending at Mortgage Advice Bureau, said: “This morning’s report from UK Finance on the gross mortgage borrowing in June provides further evidence that the UK housing market remained at a steady trajectory last month, with borrowing for home purchases broadly in line with the previous six months and also slightly increased on June 2016.
“As we have observed, many UK consumers are continuing to move home, with the current economic and political climate making little or no difference to their decision making process, given that it would generally appear to be lifestyle factors driving the decision to move. Overall, not an unexpected set of data but one that potentially provides a reassuring outlook given the wider picture over the first half of this year.”
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