Mortgage approvals decline to a record level low
Statistics have shown that throughout 2008 mortgage approvals have dropped low as 21,118, a major decrease of 66.9 per cent compared with 2007's facts.
The British Bankers' Association (BBA) indicated that the downturn in the housing market is accelerating as lenders place strict restrictions on credit.
David Dooks, BBA director of statistics commented: "Another record low number of mortgages approved by the banks for house purchase means that the whole market is likely to be at its least active since the early 1990s."
Through June period record figures proved that approvals had been cut by 50 per cent, highlighting the difficulties facing estate agents, homebuilders and retailers.
UK’s house prices have decreased by almost 10 per cent from its peak last August 2007, the credit crunch has created more problems and to obtain finance, it has become an impossible solution for borrowers.
It has been suggested that by the end of 2008 mortgage approvals are going to become even worse, creating a further decrease on property value and completions.
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