New mortgages at four-year low

Fresh signs the housing market is finally running out of steam emerged today after new figures showed mortgage approvals are at their lowest level for nearly four years.

City experts said interest rates may have hit their peak at 4.75 per cent given rising concerns that any further increase could lead to a damaging correction in house prices.

The Bank of England today showed the number of mortgage loans approved in July was 97,000, the lowest since the end of 2000.

Mortgage borrowing rose by £8.6 billion, below the £9.3 billion recorded in June.