Mortgage approvals hit record low


Fri 23rd Nov, 16:59:14 GMT

New figures out today show that the number of mortgages approved by banks for house purchases hit an all-time low last month.

The British Banker''s Association (BBA) reported that 44,105 such mortgages were approved in October - amounting to 18 per cent fall since September and marking a year-on-year fall of 37.4 per cent.

That puts last month''s figures at their lowest level since records started ten years ago, with the total value of mortgage approvals standing at £15.1 billion in October, well below the six-month average of £19.5 billion.

The ongoing credit crunch is being primarily blamed for the downturn, but the BBA''s statistics director David Dooks stresses that a number of other factors are also at play.

"Pressure on household finances, the cumulative impact of interest rate rises over the last year, the expanded application of home information packs and the consequential impact of the credit crunch may well all have a part to play in suppressing current demand and supply," he said.

Also suffering is the remortgage market, which shrunk 17.1 per cent year-on-year in October to 54,881 new loan approvals.
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