Home loan market remains flat

The number of mortgages approved for home purchases was broadly flat over January, indicating continued weakness in the housing market, according to the latest figures from the British Bankers' Association.

The main high street banks approved 28,932 mortgages last month, slightly ahead of the two-year low of 28,907 seen in December, and well below the 36,555 loans approved in January last year.

Net mortgage lending was £1.6bn higher over January, an acceleration from the £900m increase seen back in December 2010, the industry group said.