Number of UK mortgages declined in January
by Elaine Frei
According to the British Bankers Association (BBA) on Tuesday, the number of people taking out mortgages in January was down to its lowest level in two years. Despite the drop in the number of mortgages approved, the total amount borrowed to buy houses was up from January 2006.
The number of people taking mortgages in January was at 37,804, down from 45,000 in January 2006, a decline of around 1 percent. On the other hand, the amount borrowed was up 15 percent, from £14.5 billion in January of last year to £16.6 billion last month. That amount includes both first mortgages and remortgages.
The number of people taking out mortgages was affected by a one-time removal of about 7,000 loans that had been agreed to in the past, but even taking those into account, the number of loan approvals was down. Some analysts believe that the figures are an indication that recent interest rate increases by the Bank of England are beginning to have an effect on the housing market.
The figures from the BBA cover about half of UK lending for mortgages; data for all lenders will be released later in the week by the Bank of England.
Discuss this in the Finance Markets forums
Story link: Number of UK mortgages declined in January
Add to Bookmarks:
Related financial stories to: Number of UK mortgages declined in January
- February mortgages set record for month
- House price growth slows in January
- January mortgage lending down from December, still sets record
- UK house prices up in January
- Interest-only mortgages gain in popularity, lenders cautious
- UK trade deficit down in January
- One per cent fall in January house prices
- Decline in July mortgages
- More buyers choose fixed-rate mortgages
- UK manufacturing grows in January
Previous: « Standard Chartered says full-year profits up
Next: Royal Mail asks for stamp price increase »
Visited 741 times, 3 so far today