Fall in mortgage lending now affecting house sales

April is now the second lowest month on record for mortgages being approved, and this is now starting to have an affect on the housing market. The slump in these approved mortgages is down by at least 39 per cent, compared to the same time last year. The first signs that we was in for a rough ride in the housing market and mortgage sales was when the US investment bank Bear Stearns collapsed, the sent a huge panic in the investment world which pushed commercial rates higher than ever, these were higher than the ones that The Bank of England set.

According to The Independent, the reason that mortgages were at an eight-year high was because the freeze in the wholesale money market. There are small glimmers of hope for mortgages though, as the market rate is slowly responding to efforts by the central banks to help stabilise the markets, which is hopes to help restore confidence in the banking system.