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Mortgage approvals decrease

23/11/2007

The amount of mortgages approved for homebuyers decreased to a record low in October 2007.

Analysts assumed the data, which was put forward, were the "troubled housing market figures". Mortgages have grown less eye-catching for latent homebuyers after five-interest rate rises.

Lenders have also tried to claw back lost profits subsequent to the failure of sub-prime borrowers in America to reimburse their mortgages.

BBA statistics director, David Dooks commented: "Pressure on household finances, the cumulative impact of interest rate rises over the last year, the expanded application of Home Information Packs and the consequential impact of the credit crunch may well all have played a part in suppressing current demand and supply."

The chief economist at RICS, Simon Rubinsohn spoke further: "First time buyers are being particularly badly affected by the reining in of lending activity by mortgage providers."

"We wouldn't be surprised to see small falls but not a sharp crash," he added.

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