Mortgages lending falls to record low

| April 29, 2008 | 0 Comments
Mortgages lending falls to record low

Latest figures from the Bank of England show that the UK mortgage market is continuing to contract, with the number of loans for house purchases falling to a record low, in March.

The volume of mortgages approved for the purchase of a property fell during the month to 64,000, compared with 72,000 in February.

The figure is 44% below March 2007 and is in line with data from the British Bankers’ Association, which recently reported that last month’s mortgage lending by its members fell 46.2% on March 2007.

The global credit crisis has resulted in mortgage providers increasing rates, tightening lending criteria and withdrawing attractive mortgage deals after only a short period of availability.

In recent weeks, deposit requirements have changed dramatically with many best-buy mortgages now requiring a 25% lump sum.

March also saw an 11,000 decline in the number of remortgages agreed, on February’s figures of 98,000.

Meanwhile, buy-to-let lending for new properties shrank by 6,000 last month, to 57,000.

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