BBA: Mortgage approvals down 29% on year in January

The British Bankers’ Association (BBA) has today revealed a further fall in the number of new mortgages approved by the major banks in January.

According to the BBA, the number of new mortgages approved in the month stood at 28,932 – marginally better than December’s levels but 29% lower compared with January 2010.

The figures suggest mortgage lending will remain subdued this year after the Council of Mortgage Lenders (CML) also reported mortgage lending remained weak in January.

Mortgage lending fell by 13% in January compared with December – the lowest level for a year, according to the CML.

In the meantime, the BBA said 28,907 remortgage loans were approved during January – a 28% rise on levels a year ago.

Commenting on today’s figures, BBA’s statistics director, David Dooks, said: “We are seeing little change in the borrowing environment for households or businesses at the start of 2011.”

The figures come shortly after HM Revenue & Customs (HMRC) revealed a slump in the number of homes sold in January in the UK.

According to HMRC, just 54,000 homes worth at least £40,000 or more were sold in the month – the lowest number since January 2010.

Earlier this week, property website Rightmove said most of the UK property market faced “paralysis” this year.