Mortgages drop by 14 per cent
Last months figures indicate that the
number of mortgage approvals has decreased by 14 per cent.
BBA witnessed 52,685 approvals for house purchases during September
period, this a drop from 61,051 the previous month and 27 per
cent lower than 2006.
Approvals are the main measure of progress,
especially in the property sector, and this decline is seen as
an early indicator of a slowdown in property value.
Mr Newland commented: "We expect mortgage demand, and other indicators
of housing activity, to slow further in the coming months, consistent
with quite a sharp slowdown in house price inflation in 2008."
BBA's director of statistics, David Dooks added, “Lower
amounts of new mortgage
lending and fewer loans approved for
house purchase signal a weaker outlook for the mortgage market,
particularly if loan supply reduces in the aftermath of the recent
financial markets difficulties and borrowing costs remain at
Research by the Royal Institution of Chartered Surveyors have
stated that house prices have started to decrease at a steady
pace first time in two years.
Free Mortgage Enquiry