The mortgage market has slumped again in this summer with a sharp fall in the number of house loans approved by the High Street banks of UK.

According to the British Bankers’ Association (BBA), the number of mortgages approved for home purchases have fallen down by 877 in the month of July as compared to the previous month and stood at 33,698.

This was the second consecutive monthly fall in the figures and was in its highest point of 45,415 in the December of 2009.

According to the report of BBA, the personal loans and the credits also saw a fall in the year 2010. The gross mortgage lending of the major banks was just below its average of last six months in July and stood at 8.4 billion pounds.

Most of the buyers are willing to repay their mortgage despite of the low interest rates.

The net mortgage lending has climbed up by 1.95 billion pounds. This has been the second lowest rise since February of the year 2001. The remortgaging rose up with a very small margin in July to 22,790 but it has gone up from a very low base.