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Mortgage Approvals in the UK fall again

02/09/2008

Mortgage approval levels in the UK have fallen again, that makes it twelve months in a row according to the Bank of England today. This could mean that we could see further house price falls.

Mortgage approvals are at around a third compared to the same time last year, and are currently at their lowest since April 1993. This is all as a consequence of the credit crunch.

Mortgage approvals which are an indicator of house prices in the future were at around 35,000 in June and fell to 33,000 in July.

An Economist at BNP Paribas, Alan Clarke said, "It's at painfully low level so we are still facing the prospect of falling prices for at least another year."

An Economist at Global Insight, Howard Archer said, "While we now expect the Bank of England to cut interest rates before the end of 2008, we believe that it will not move before November when there is likely to be growing evidence that the deepening economic slowdown and rising unemployment are diluting underlying inflationary pressures."


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