New mortgage approvals fell by 65 percent this year

According to figures released by a leading banking organisation the numbers of mortgages approved by lenders have decreased by two-thirds over the last year. During the month of July this year 22,448 mortgage loans were approved, but 64,184 were approved in July 2007 that’s a fall of 65 percent.

The total value of all mortgages approved also fell by seven per cent during the month to £11.8 billion, 44 per cent lower than 12 months ago, and considerably down on the recent six-month average of £16 billion.

BBA spokesperson Rick Salmon, said that “There has been this decline in the number of loans approved in the last six months. It is down to a very quiet housing market and partly driven by people not wanting to borrow in the context of house prices falling.”

Some good news was that net mortgage lending was left unchanged since June and has leveled out at £4.3 billion, but even though there has been short term stabilization it’s a far cry from the economy improving quickly.

The housing market will still take some time to improve, with the cost of living going up for households this will make it harder for people wanting to purchase property due to lack of funds and deposit.

Source: telegraph