Mortgage approvals fall to record low

The number of mortgages given to home buyers has fallen to a record low, figures have shown.

In the latest sign that the credit crisis has effectively shut down the mortgage market for many, the Bank of England disclosed that the number of new mortgages approved in March fell to 64,000 — a 44 per cent drop on last year.

Economists said the figures were the clearest sign yet that buyers are finding it increasingly difficult to raise the money to purchase a home.

Although house prices have started to dip, a lack of mortgages is causing a severe slump in transactions, which is causing estate agents to lose their jobs.

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