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Mortgage approvals fall to lowest level ever recorded

Updated on 29 July 2008

By Bridgid Nzekwu

The number of new mortgages is down to the lowest level ever recorded, according to Bank of England figures.

The Bank's figures for June show a drop of almost 70 per cent in new home loans compared with a year ago.

It is the clearest indicator yet of how the credit crunch is affecting the housing market and comes as an independent review of the mortgage market commissioned by the Treasury warns the credit crunch could last another two years or more.

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