In its statistical release today the BBA found only £3.3bn house purchase loans were approved in June, down from £4.2bn in May.
The number of mortgages approved took another blow with 21,118 processed in June compared with 27,499 in May, down 66.9 per cent year-on-year. Gross mortgage lending meanwhile dropped from £15.9bn in May to £15.1bn in June.
BBA statistics director David Dooks describes the results as another record low.
He says: “Another record low number of mortgages approved by the banks for house purchase means that the whole market is likely to be at its least active since the early 1990s.
“However, even in this rapidly slowing market, net lending has still grown by 12 per cent over the past year and there continues to be significant numbers of people remortgaging with the banks.”