The number of mortgage approvals fell to an 18-month low in July after the EU referendum, new figures show. The number of approved home purchases fell 5% in July to 37,662, compared with 39,763 in June, according to the British Bankers' Association. The gross mortgage was £12. 6 billion in July, or 6% more than the previous year. Rebecca Harding, chief economist at the BBA, said the EU referendum failed to have a significant impact on borrowing. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an original essay She said: “This month’s BBA high-level banking statistics are the first set of borrowing figures collated since the EU referendum. The data does not yet suggest that borrowing patterns have been significantly affected by the Brexit vote, but they are still in their early stages. Many borrowing decisions will also have been made before the referendum vote. “We are also clearly still a nation of shoppers and the Brexit vote has not changed the fact that we use credit cards for short-term purchases. Strong retail sales figures appear closely associated with strong growth in consumer credit. On the eve of April's stamp duty hike, borrowing boomed as buyers brought forward their deals to meet deadlines. The property market has also been hit by uncertainty over the impact of the EU referendum, with many buyers adopting a more cautious stance. approach and delay purchases. Economists say property market activity will likely slow in the coming months and prices will weaken as uncertainty following the Brexit vote continues to weigh on consumer confidence. To help boost 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, chief executive of mortgage broker SPF Private Clients, said: “Early post-referendum lending figures show few signs of panic, although these decisions would have been made before the result was known. Home purchase approvals are lower than in July last year, although remortgaging was higher as borrowers took advantage of historically low mortgage rates. July and August are still traditionally quieter times of year for the market; the real test will take place in September, after returning from vacation. We will then see if they make purchasing decisions or hold them off until more clarity is obtained. Rehypothecation will likely strengthen. Keep in mind: this is just a sample. Get a personalized document now from our expert writers. Get a cheap custom essay, especially at fixed rates, that it seems crazy not to get one. It remains to be seen how long lenders will retain their appetite to lend at such low rates.” Countrywide predicts house prices will fall by 1% next year as the economy weakens following the vote to leave the EU. The company expects the property market to be affected by uncertainty surrounding the terms of leaving the EU and the effect this will have on trade and future economic growth. Prices will fall due to the decline..