Mortgage approvals continue to fall

| October 31, 2010
Mortgage approvals continue to fall

The Bank of England has revealed mortgage approvals fell for the fifth consecutive month in September.

According to the Bank, there were 47,474 loans granted in the month – the lowest level since February.

The figure continues to be well below the 60,000 reached in November 2009 as buyers took advantage of the stamp duty holiday, which prompted a rush to buy homes towards the end of last year.

Furthermore, they are less than half the level reached at the height of the housing boom in 2007.

Last week, the British Bankers’ Association (BBA) revealed a further fall in the number of new mortgages approved by the major banks in September.

Mortgage lending slumped to its lowest level in a decade in September, while mortgage approvals dived to an 18-month low, said the BBA.

In addition, the Council of Mortgage Lenders (CML) recently revealed gross mortgage lending totalled £12 billion in September – the lowest September total since the year 2000.

According to the CML, gross mortgage lending fell 1% on the month and was 7% lower than in September 2009.

There is little good news surrounding the housing market currently and many experts expect house prices to fall in the coming months. Experts have warned that lending could slow “more significantly” in the months ahead.

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