New mortgage rules see lending drop

%VIRTUAL-SkimlinksPromo%Mortgage approvals fell back for the fourth month in a row in May in signs that toughened lending rules are taking the heat out of the housing market, high street banks have reported.

The number of mortgage approvals which have been given the green light both for house purchase and for home owners looking to re-mortgage has been falling every month since February, figures released by the British Bankers' Association (BBA) show.