Slight increase in mortgage approval levels for September
According to recently released figures there was a slight increase in the level of mortgage approvals in the UK during the month of September compared to the previous month. There were 21,342 mortgages approved for the month of August, and there was a slight increase for September, where 23,422 mortgages were approved. Whilst the slight increase in mortgage lending may seem encouraging, officials have warned that mortgage approvals for September were still 57% lower than in September of last year.
The British Banker’s Association’s statistics director, David Dook, said: “Compared to a year ago, the mortgage environment has changed significantly, with supply restricted as a consequence of the situation in financial markets and demand at a much reduced level. Pressure on household budgets, the slowing economy and fragile consumer confidence are suppressing consumer appetite for unsecured borrowing, but personal deposits across the high street banks held up.”
Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors, added: “The slight month on month rise in September is consistent with the pick-up in new buyer enquiries in the RICS monthly housing market survey indicating that opportunist buyers are still on the look out for bargains. However, as the country teeters on the brink of recession and the employment picture deteriorates, mortgage lending is unlikely to see a recovery in the near term.”
Over the past year the level of mortgage lending has slumped dramatically as a result of the global credit crunch, and this has impacted on the housing market which has seen the level of property sales slump and has also seen house prices fall by over 13% since last year.
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