39 per cent drop in mortgage approvals
The number of new mortgage approvals fell in February to 73,000, according to the latest figures released from the Bank of England.
That is is 39 per cent drop on the same month last year and sees mortgage lending at it’s lowest level for 13 years.
Bank loans, hire purchase agreements and overdrafts rose by 2 billion for February, however the Bank of England say that the rise is most likely because students are having to borrow more and use overdrafts more because of the rise in tuition fees.
The credit crunch has left banks and building societies finding it hard to raise funds needed to provide customers with mortgages. This is why we’re seeing mortgage lenders pulling their competitive mortgage products and why we’re seeing an increase in loan applications with the most competitive products.
If you’re due to remortgage in the next few months start comparing mortgages today
April 5th, 2008 at 11:02 am
Things seem to be unraveling at last — I’ve been amazed how the UK has held up as the US crisis has hit, as I’m sure we’re more exposed than they are (although perhaps their more marginal communities are more vulnerable, hence the sub prime crash). HBOS has tightened up its mortgages too - and it’s the biggest provider in the UK!