Mortgage approvals slumped in March
Recent figures show that mortgage approval levels have been plummeting over recent months, with the number of mortgage approval levels falling to 64,000 in March. This was a 44% drop from the same period a year earlier, and was the lowest level since records began in 1999. The falling figures have stemmed from the global credit crunch, which has resulted in lenders tightening up on their lending criteria as well as falling house prices, which has put many people off making a purchase.
One broker spoke about the reasons behind the falling mortgage approval levels, stating: “First of all a significant number of lenders have just pulled out of the market completely and also it’s the big lender groups that have actually got access to funds.”
Another industry official added: “The news that mortgage approvals dropped to a record low of 64,000 is hardly surprising given that lenders have been aggressively scaling back on the provision of finance to homebuyers.”
The Bank of England has put forward a £50 billion mortgage rescue plan, which is designed to enable lenders to swap mortgage assets for government bonds, which is aimed at increasing confidence and liquidity, but this could take some time to kick in.
One official said: “The Bank of England’s Special Liquidity Scheme, if it works, might stop things getting much worse. But lenders will remain cautious.”
Mortgage lending levels have continued to slump, and with house prices falling as well the mortgage and housing markets in the UK face a very bleak couple of years according to industry officials. Earlier this week Caroline Flint, the housing minister, inadvertently indicated that the government expected house prices to fall by 5-10% this year.
Recent additions:
- Credit crunch means slump in mortgage lending
- Could you be entitled to a break in monthly mortgage repayments?
- Nationwide asks for larger deposits from borrowers
- UK Mortgage lending levels remain subdued
- How will government help struggling homeowners?
Related Posts
May mortgage approval levels plummet
A recent report showed how mortgage approval levels for new home buyers in the UK plummeted in May, further reflecting the ongoing housing and mortgage slump that has come about as a result of the global credit crunch. House prices have been falling for some months now, and mortgage availability has been getting tighter Officials have said that these figures indicate that things will get worse before they start to get better.
»Fall in number of mortgage approvals for homebuyers
According to recent figures there has been a significant fall in the number of mortgage approvals for homebuyers. Recent figures have shown that mortgage approval levels for homebuyers have fallen by around 64% over the past year. According to officials from the Bank of England approval levels for homebuyers have dropped to levels last seen in the 1990s. For May there were just 42,000 new mortgage approvals for homebuyers, which was the lowest on record since 1993.»
Drop in mortgage approvals for May
According to a recent report released by the British Banker’s Association, mortgage approval levels for May slumped this year, falling to the lowest level on record. The figures show that the number of mortgage approved in May fell to under 28,000, and this was a drop of 20% compared to April. The May figure was around 56% lower than the same month last year, and is indicative of the huge problems that have hit the mortgage sector following the inset of the global credit crunch.»
Mortgage lending levels remain subdued
According to recent figures mortgage lending levels in the UK remain subdued, as the global credit crunch continues to wreak havoc in the financial markets. Figures were recently released by the Bank of England, and showed that mortgage lending levels were continuing to fall, with tighter lending conditions and fewer applications from cash strapped consumers contributing to the lower figures.
One official from the Royal Institute of Chartered Surveyors stated: “It is improbable that the bottom of the cycle has not yet been reached given the latest announcement that Nationwide is following the lead of other lenders in requiring new borrowers to now put down at least a 10 per cent deposit to secure a mortgage. This is set to intensify the already significant pressure on first-time buyers.” »
Drop in mortgage approvals as consumers spend deposits elsewhere
Reports have shown that October saw a further decrease in mortgage approval levels, falling by nearly two thousand compared to September and plunging by a massive 52 percent compared to October of last year. It is thought that part of the reason behind the fall in mortgage approval levels is that consumers have found other things on which to spend their deposits, particularly with Christmas just around the corner and very little availability of credit for many consumers.»
[...] Mortgage approvals slumped in March [...]