New figures from the BoE have revealed the true extent of the UK's mortgage meltdown...

The number of mortgages approved for people buying a home fell to a new low for the second successive month in April. A total of 58,000 loans were approved in April, the lowest since the Bank of England began collecting data 15 years ago.

March's previous record low of 64,000 was also revised down to 63,000.The April figures were worse than expected after economists predicted a small increase to 65,000. The number of loans approved for home buying has fallen to just over half the 107,000 seen 12 months earlier. The overall value of mortgages approved over the month was £23.8 billion - below the average £26.1 billion lent in the previous six months.

Under pressure

Howard Archer, chief UK and European economist at Global Insight, commented: “The housing market is under pressure from a toxic combination of stretched affordability and tight lending conditions.

"Elevated affordability pressures on potential house buyers stem from high house prices and modest real disposable income growth, while still tight credit conditions are leading to significantly fewer and more expensive mortgages being available”.

Meanwhile, Simon Rubinsohn, RICS chief economist added: "The latest weak data on mortgage approvals highlights the continuing problems facing borrowers trying to secure finance to purchase property. Lenders are continuing to tighten up on the conditions accompanying new loans making it hard for first-time buyers to take advantage of the modest fall in house prices seen over the part few months”.