Mortgage approvals for home purchases fell in July but at a much slower rate than in previous months, the British Bankers' Association (BBA) said today.
The BBA said approvals - the number of loans agreed but not yet made - fell to 65,611 in July from a 12-month high of 70,750 hit in June and were down 6 per cent from a year ago. That compared with a 20.4 per cent annual decline in June.
The average value of loans approved was up 9 per cent from a year ago at £132,700 in July.
The approvals figures are not adjusted to reflect seasonal patterns in the housing market, which means they can be volatile from month to month.
Confirming a preliminary figure from last week, the BBA said underlying seasonally adjusted mortgage lending rose by £3.7 billion - the weakest rise since December 2001 - compared with £4.7 billion in June.
It was also below the average of £4.4 billion over the previous six months.
The BBA said unsecured credit card lending rose by £123 million in July - less than half June's £293 million increase - reflecting weaker retail sales that month.
The Bank of England cut interest rates for the first time in two years in August to 4.5 per cent from 4.75 per cent to boost flagging consumer spending.