UK Jan mortgage approvals rise for first time since June - BBA

LONDON, Feb 25 (Reuters) - Mortgages approved by British banks rose in January for the first time since June, although they were still around a quarter below their level a year previously, the British Bankers' Association said on Wednesday.

Mortgage approvals for house purchase rose to 36,394 from 35,816 in December. Despite the increase, this was still down 26 percent from January a year ago.

The BBA also reported strong growth of personal loans and overdrafts, which rose 3.9 percent on an annual basis -- the highest rate since late 2008.

"There continues to be strong demand for personal borrowing which is at its highest levels in recent years," said Richard Woolhouse, chief economist at the BBA.

"The housing market appears to be bottoming out with a slight increase in approvals for new purchases in the last month but this is still significantly down on the levels of activity we saw last year." (Reporting by Andy Bruce, editing by David Milliken)