The number of loans taken out for new mortgages in the UK dipped further in January from the previous month, but remained substantially higher than the equivalent period last year, a leading industry body said yesterday.
The British Bankers Association said the number of mortgage approvals during the month fell by about 12 per cent in January to 45,039 from December's 51,233.
A year ago when there were fears of a potential housing market crash, the number of mortgage approvals slumped to 34,216.
Overall, the BBA said there were 140,020 mortgage approvals for all purposes, including remortgaging, in January, with a total value of £12.7 billion.
Though that was one per cent lower than in December, it stood eight per cent higher than in January 2005.
The BBA also said that in line with previous years, the average approval for house purchase fell in January, to £126,800 from £134,400 in December.
Nevertheless, the average approval is 11 per cent higher than January 2005.
Elsewhere, the BBA confirmed its earlier estimate that seasonally adjusted net mortgage lending during January rose by £4.6 billion in January compared with £5.3 billion in December and £4.2 billion in January 2005. This January's outcome was slightly below the £4.7 billion average over recent months.
In addition, the BBA said net lending on loans and overdrafts rose by £0.6 billion in January, double the 0.3 billion average of the previous six months, while net lending on credit cards rose by £0.1 billion, in line with the recent average, to a total of £7.81 billion.