approvals hit all time low for 12 month period
Latest UK mortgage news shows that
approvals dropped to its lowest levels in the last 12 months since
March. Figures suggest that mortgage
lenders approved 111,000 applications for mortgages
for residential purchase. This figure reflects the lowest level
since April 2006.
According to supporting evidence from
a Hometrack Ltd report, it has also highlighted that recent interest
rate increases in the last year have most definitely had impact
on the housing market, which is apparent through the decline in
number of mortgage
applications. In addition, with expected interest rate rise in
the near future the UK market could be hit further with additional
costs and not to mention the increase in debts.
Howard Archer, economist at Global
Insight said,”Housing market activity is beginning to slow
because of higher interest rates and elevated house prices''.
Predictions suggest that the Bank of
England is likely to increase interest rates by a further quarter
per cent which will take inflation accelerated to a 10 year high.