The number of mortgage approvals fell to an 18-month low in July following the EU referendum, according to new data. The number of home purchase approvals fell 5% in July to 37,662, down from 39,763 in June, according to the British Bankers' Association. Gross mortgage lending was £12.6 billion in July, 6% higher than the previous year. Dr Rebecca Harding, chief economist at the BBA, said the EU referendum had failed to have a significant impact on lending. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay He said: “This month's high-BBA banking statistics are the first set of lending data collected since the EU referendum. The data does not currently suggest that borrowing patterns have been significantly affected by the Brexit vote, but it is still early days. Many lending decisions will have been made even before the referendum vote. “We are clearly still a nation of shoppers and the Brexit vote has done nothing to change the fact that we use credit cards for short-term purchases. Strong retail sales data appears closely associated with strong growth in consumer credit.” There was a boom in lending in the run-up to April's stamp duty rise as buyers brought forward transactions to meet the deadline. The property market has also been hit by uncertainty over the impact of the EU referendum, with many buyers taking a more cautious approach. approach and postpone purchases. Economists believe property market activity is likely to slow in the coming months and prices will weaken as uncertainty following the Brexit vote continues to weigh on consumer confidence. To help stimulate growth, the Bank of England cut interest rates from 0.50% to 0.25%, the lowest on record. This is the first interest rate cut since 2009, when the financial crisis was at its peak. Mark Harris, managing director of mortgage broker SPF Private Clients, said: “The first set of post-referendum lending data shows few signs of panic, although those decisions the loan would have been taken out before the outcome was known. Home purchase approvals are lower than in July last year, although remortgaging has been higher as borrowers took advantage of record-low mortgage rates. July and August are always traditionally the quietest periods of the year for the market; the real test will come in September, after returning from holidays. Then we'll see if they will make purchasing decisions or put them on hold until there is greater clarity. Remortgaging is likely to go from strength to strength." Please note: this is just an example. Get a custom paper from our expert writers now. Get a custom essay This isn't so much because borrowers fear rising rates: rather mortgage deals are so cheap, particularly fixed ones, that it seems madness not to snag one. What remains to be seen is how long lenders will maintain their propensity to lend at such low rates.” Countrywide expects house prices to fall 1% next year as the economy weakens following the vote to leave the EU. The company expects the property market to be hit by uncertainty surrounding how to leave the EU and the effect this will have on trade and future economic growth. THE.