Mortgages approval record low
The number of house mortgages approved has fallen to a record low in March. A report by British Banker’s Association (BBA) shows that just 35,417 new mortgages were approved over March, the lowest number since it started collecting figures this way in September 1997.
When comparing mortgage approvals this year to the previous one, there is quite a substantial difference. Approvals for house purchases were 46% lower for March last year, and well below the previous six-month average of 44,879. The BBA’s figures showed a decline in the value of mortgages advanced in March, and a steep fall in the number of mortgages approved is set to have a further negative effect on this.
Howard Archer, chief UK economist at Global Insight, said: “March’s BBA data indicate that mortgage activity is being pummeled by a toxic combination of stretched affordability and very tight lending conditions. The low level of mortgage activity is not only a consequence of slowing demand for houses due to the elevated affordability pressures facing potential house buyers, but also increasingly due to very tight credit conditions leading to markedly fewer and more expensive mortgages being available”.