BBA & James Crosby Ex HBOS cheif warn on mortgages

The British Bankers Association (BBA) released a report today that shows that mortgage approvals fell from 23,383 in September to 21,584 in October. The report also shows that it’s extremely close to the record low in August of 21,363.

The BBA reported that the number of approvals fell by 52 percent since October 2007.

Consumer credit increased slightly in October to £0.3 billion from Septembers £0.2 billion however the BBA reported that the market is still stagnated.

The Chancellor yesterday announced plans to kick-start the housing market, one action allowing a three month grace period for mortgage holders facing repossession.

The alarming mortgage lending figures from the BBA highlights Sir James Crosby’s warning that net mortgage lending could hit rock bottom with zero lending over the next two years.

Sir James Crosby, the former CEO of HBOS said that if pressure on the wholesale lending markets and the closed securitization market continues, the majority of lenders will have no reason to expand their balance sheets.

Source: timesonline