UK Mortgage Approvals in Steep Decline

  • 14 years ago
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1/09/2010 Overseas property investors seeking bargains in the UK will be keeping a close eye on what is happening in the UK housing market. Latest mortgage lending figures from The Bank of England indicate a huge drop in mortgage approvals a sign of worried home owners who are staying put.
The Coalition government are taking drastic measures to reduce the British debt and these measures appear to affecting consumer confidence. The very real threat of public sector drop losses is not a backdrop to inspire confidence and the Bank of England figures show that mortgage lending figuresare the fourth lowest since the Bank’s records began in 1993.
Net lending, which strips out redemptions and repayments, totaled just £86m during the month – a steep fall from June’s £518m
The Royal Institute of Chartered Surveyors commenting on the Bank of England mortgage approvals RICS chief economist said:
“A lack of mortgage finance remains a key problem for many borrowers looking to take their first step on the property ladder, with the high deposits required still proving to be an obstacle for many. Uncertainty over the outlook for the market may also be discouraging would be buyers. This is reflected in developments in the rental market; the latest RICS Residential Lettings Survey released last week showed tenant demand continuing to grow strongly and rents rising due to a lack of supply.” 

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