Mortgage approvals are on track to slump to their lowest level since the financial crisis as high interest rates continue to hammer borrowers, figures show.
Based on the current trajectory, the number of home loans agreed will fall this year to the lowest level recorded since 2008, according to Capital Economics.
It comes as Bank of England data showed the number of mortgage approvals for home purchase fell to 48,690 in April, down from 51,488 in March, quashing hopes of a housing market recovery.
The figure marks a 26pc year-on-year drop and far below the rise to 53,000 expected among analysts, who had predicted growth following the steady decline in mortgage rates since the autumn mini-Budget.
Andrew Wishart, who runs the Capital Economics’ housing service, said mortgage approvals will fall from 752,000 in 2022 to 540,000 across this year.
This would represent a loss of 212,000 deals, or just a little more than half the number of mortgages agreed in 2021 during the peak of the pandemic property boom.
The last time mortgage approvals were so low was in 2008, when the number of loans hit 523,316 during the credit crunch, Bank of England data shows.