London (shakespearefinance) 5 January, 2008: According to the data released by the Bank of England, the mortgage approvals in November 2007 hit their lowest level in almost three years. The latest figures show that only 83,000 new mortgages were approved in the month of November 2007, a fall of 6,000 when compared to October.  
 
The November 2007 figures were the lowest since January 2005 and not very far away from the figure of 77,000 registered in November 2004. The number of mortgage approvals is a lead measure of the health of the property market. The reduction in the number of mortgage approvals shows that the property market is experiencing a slowdown.  
 
Overall, the year 2007 witnessed an increase in home prices by around 5-8 per cent but the prices started falling at the end of the year. The experts believe that house prices will continue falling this year or, at best, stay level over the course of the next 12 months. First time home buyers can expect a positive market this year particularly if the interest rates drop further, making it easier to raise finance for buying a home. The effect of global credit crunch has dampened the spirits of the first time buyers as the interest rates in respect of secured loans and mortgages shot upwards and are still haunting them.