Would-be buyers take time out

The Jubilee bank holiday, wet weather and the Euro 2012 football tournament prompted thousands of would-be homebuyers to take a break from the search in June, according to new lending figures.

The latest data from the British Bankers' Association shows an 11.5 per cent plunge in mortgage approvals for new houses compared with the May total. The number of loans granted by high street banks stood at 26,269, down more than 20 per cent on a year earlier and the lowest for more than three years.

Consumers meanwhile remain cautious, paying back £200m in personal loans and credit card debt over the month.

The BBA's statistics director David Dooks said: "Public holidays and wet weather put a damper on mortgage approvals in June and demand for unsecured household borrowing was also low."