on the struggle for new mortgages
People who choose to take on a loan
for a new property had dropped to the lowest level for 2 years
in January. This is simply because house prices are rising and
people are choosing a different option.
The BBA – British Bankers Association
stated that the total gross mortgage lending increased to £16.6
billion during the month; this is 15% greater than £14.5
billion January 2006 period.
Two years ago the figures showed that
45,039 were taking on a new mortgage, this figure today has dropped
to a stunning 37,804.
In January the common size of loan
for a house was £146,700, this is 16% more than a year sooner.
BBA feel that due to high interest rates and house prices taking
on a mortgage is becoming harder for people today.
Director of statistics at BBA, David
Dooks said: "January saw a continued stable demand for mortgages.
Actual borrowing on mortgages remains strong compared with this
time last year, so the impact of higher interest rates has yet
He also spoke further: "Prudent
repayments, particularly on credit card accounts, are keeping
the unsecured credit picture very subdued."