Mortgage lenders are proving to be even more cautious this month than ever before, only 33,000 mortgages were approved in July which is 2,000 less than the month of June. It is made even more apparent just how far reaching the credit crunch has been when you see that the numbers are down a massive 114,000. It has now been the 12th straight month where mortgage approvals have fallen, adding credence that the country is still very much in the throws of a financial crisis.

These are officially the lowest since records began back in April 1993 and highlight the ever cautious approach lenders are exercising following the devastating losses experienced at the outset of the crunch. On the one hand it has a positive effect on the housing market as prices will undoubtedly fall, however it does not necessarily make purchasing a property any easier as obtaining a mortgage is proving to be more difficult.