However, despite a slowdown in demand, the overall mortgage stock continues to rise and is 1.6% higher than a year ago.
The research stated that after recovering from a temporary bottleneck associated with the implementation of the Mortgage Market Review earlier this year, recent figures show that overall approval numbers have been slowing.
Compared to the same time a year earlier, house purchase approvals were down 20%, remortgaging fell 22% and equity withdrawal was down by 35%.
BBA’s Chief Economist, Richard Woolhouse said:
“Today’s figures show quite a sharp chill to the housing market in recent months – with house purchase approvals during November 20% lower than a year before.
“It will be interesting to see what impact the stamp duty changes the Chancellor unveiled in his Autumn Statement will have early in the New Year. They could prove a modest stocking filler for homebuyers and estate agents.
“It’s also striking to see that unsecured borrowing such as personal loans are growing at their fastest rate for six years. This suggests consumers may be feeling more confident which bodes well for a fruitful Christmas for retailers.”
Mark Harris, chief executive of mortgage broker SPF Private Clients, said:
"With a 20 per cent drop in house purchase approvals on the same month last year, there is growing evidence of a slowdown in the housing market. With the tough MMR rules now really having an impact, more borrowers are turning to unsecured borrowing as they struggle to get the mortgages they need.
"The changes to stamp duty should provide a modest fillip in the spring but we expect uncertainty around the general election to keep the housing market fairly subdued until after May. Once the election result is known, we expect the pent-up demand from the start of the year to be released and the year overall to be a strong one, with around £215bn of lending.
"However, there are problems with the implementation of the MMR which need resolving. The regulator must urgently address the issue of older borrowers, for example, many of whom are now struggling to get a mortgage. It is difficult to fathom why a lender would rather advance 95 per cent loan-to-value to a first-time buyer with no track record than 50 per cent to an older borrower with a 40-year unblemished track record."
