New figures have revealed that home loan approvals fell by more than 60 per cent in 2008 to a new record low, despite the recent interest rate cuts from the Bank of England . The data, released by the British Bankers’ Association, shows that just 17,773 mortgages were approved in November, down by 60.7 per cent on the previous year. The figure was also down from the 20,767 of October. The sharpest month on month decline during November was seen in the number of people remortgaging, with just 29,798 loans approved for people switching to a new deal in November, compared to 52,452 in the previous month.
The BBA also revealed that net mortgage lending slumped below £3 billion in November, down by £400 million from the £3.3 billion lent in October. BBA statistics director, David Dooks, said, ‘People remain concerned about the impacts of the rapidly slowing economy on their personal finances.’ However, one positive note arose from an increase in personal deposits, which is said to reflect an inflow of savings reclaimed from accounts in Icelandic banks .
Global Insight’s Howard Archer warned, ‘The outlook for the housing market remains bleak. It is still very difficult for many people to get a mortgage or find the required larger deposit.’
British Banking Association Reveals Mortgage Approval Slump
Financial Services > e-banking > Banking news
British Banking Association Reveals Mortgage Approval Slump
Wed, 24 Dec 2008
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