BBA: Mortgage approvals continue to fall

| January 26, 2011 | 0 Comments
BBA: Mortgage approvals continue to fall

The British Bankers’ Association (BBA) has today revealed a further fall in the number of new mortgages approved by the major banks in December.

According to the BBA, the number of new mortgages approved in the month fell to 28,726, down from 29,696 in November - representing the lowest figure since January 2009.

Net mortgage lending rose by just £0.88 billion - the worst figure since June 1999.

The figures suggest that the mortgage market will remain subdued over the coming months.

Last week, the Council of Mortgage Lenders (CML) reported mortgage lending remained weak in December.

Mortgage lending fell by 6% in December compared with November, said the Council.

According to the CML, mortgage lending totalled £11 billion – this was 18% lower compared with December 2009 – when buyers were rushing to beat the end of the stamp duty holiday.

It was also the lowest figure for the month of December since the year 2000.

However, traditionally December is one of the quietest months for the housing market as people focus on Christmas.

In related news, HM Revenue & Customs said that the number of homes sold in the UK during 2010 was 885,000.

While this was an improvement on 2009 levels, it was just over half of the peak seen during the housing boom years of 2006 and 2007.

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