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All time low for mortgage approvals in the UK

26/09/2008

New figures show that in August mortgage approvals for home purchases have hit an all time low.

According to the BBA, the British Bankers’ Association, the number of homeowners remortgaging dropped to over forty-seven t thousand compared to a six month average of over sixty-six thousand.

David Dooks statistics director from BAA said, “Falling property prices, economic pressures on households, tighter lending criteria and anticipation of the government's announcement on stamp duty all suppressed or delayed demand in August and will continue having an impact in the months ahead.”

Chief UK economist at Global Insight, Howard Archer said, “The BBA data graphically highlight that housing market activity continues to be throttled by stretched affordability and tight lending conditions. Widespread expectations that house prices will continue to fall markedly for some considerable time to come is also significantly limiting housing market activity, as is heightened concern over the economic outlook and job prospects.”

Dooks sais, “Monthly fluctuations in consumer credit and deposits reflect the behaviour of families repaying as much as they spend on credit cards and using their current accounts for expenditure.”


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