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01 Oct 2009
Mortgage approvals drop in August
The number of new mortgages approved, but not yet lent, has fallen for the first time in 10 months, according to figures from the Bank of England.
In August there were 52,317 approvals, down slightly from 52,404 in July.
The data adds to growing evidence that the recent revival in the property market may have reached a plateau.
Other figures from the Bank showed that total personal debt grew again in August, after falling in July for the first time on record.
Personal debt rose by £700m last month, taking the outstanding amount in the UK up to £1,457bn.
An extra £1bn was added to mortgage debt in August, partly offset by a second consecutive month in which consumer credit - such as credit card debt, personal loans, and hire purchase agreements - fell by £300m.
House sales and prices have picked up since the start of the year, but the revival appears to have stalled over the summer.
This week, the Land Registry said house prices in England and Wales fell slightly in August, dropping by 0.1% during the month.
Last week, a small drop in the number of property sales in August was reported across the UK by HM Revenue & Customs.
And the Council of Mortgage Lenders reported that new mortgage lending in August was lower than in July.