31 per cent drop in new mortgages
The number of people taking out a new mortgage was down by 31 per cent in January compared to this time last year.
The figures released from the BBA, British Bankers Association, state that mortgage approvals were at 44,288 for January 2008. This was a slight increase on December 2007 of 42,343 mortgage approvals.
However it also showed that re-mortgages increased from 67, 535 in December 2007 to 79,016 in January 2008 a very strong 39 per cent increase.
This could be something to do with the poor run of interest rate rises over the course of 2007 forcing people to take stock and re-mortgage to a better deal in the New Year.
BBA director of statistics, David Dooks, said “Higher gross mortgage lending in January largely reflected very strong re-mortgaging activity, as borrowers sought out the best deals available,”
“Although house prices and new loans for house purchase, appear to be subdued as the housing market slows, the strength of re-mortgaging would suggest competition for mortgage business and switching remains high.”