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Banks approve just 1,000 mortgages a day
doire_2
Posts: 2,280 Forumite
http://www.telegraph.co.uk/finance/personalfinance/7962555/Banks-approve-just-1000-mortgages-a-day.html
Banks are approving just 1,000 mortgages a day as they clamp down on who they will lend to, new figures have suggested.
Despite calls for banks to lend more after receiving billions of pounds of taxpayer support amid the credit crisis, the latest figures from the British Bankers Association said banks approved just 33,698 mortgages in July.
It is down from 34,575 mortgages the previous month and the situation has got significantly worse compared with last year, with levels down from 41,353 mortgages in July 2009.
The latest figure is half the amount of mortgages approved before the credit crisis hit.
It comes after warnings that home owners can expect to pay £1,700 a year more for fixed rate mortgage as banks impose the highest profit margins in two decades.
The rates paid by borrowers on these deals are almost at a seven year low but experts said they should be even lower, yet banks are refusing to pass on the cheaper costs of borrowing.
Borrowers are struggling to secure significant deposits of at least 25 per cent to secure the best mortgages rates.
They are also concerned about making large financial commitments amid widespread job insecurity and the rising cost of living.
Ed Stansfield, chief property economist at Capital Economics, said it is difficult to see what would boost the housing market amid the gloom.
“The latest mortgage lending snapshot from the BBA suggests that growing pressure on household finances, rising fears about job security and still-tight lending criteria are depressing activity in the housing market,” he said.
“The renewed weakness of mortgage demand in 2010 has been a key factor in explaining why the pace of house price rises has slowed sharply since the turn of the year and, on some measures, now begun to go into reverse.”
Average house prices dropped 0.5 per cent in July to just under £170,000, according to Nationwide. Economists have predicted that prices could fall a further 20 per cent if confidence fails to pick up.
David Dooks, statistics director at the BBA, said demand for mortgages continues to be “subdued”.
He explained: “The greater availability of properties for sale and slowing house price growth have not yet fed through to increased house purchase approvals.
“Consumer credit outstanding continues to reflect high repayments together with pressure on household finances and job uncertainty while companies are tending to retrench and reduce their bank borrowing.”
Banks are approving just 1,000 mortgages a day as they clamp down on who they will lend to, new figures have suggested.
Despite calls for banks to lend more after receiving billions of pounds of taxpayer support amid the credit crisis, the latest figures from the British Bankers Association said banks approved just 33,698 mortgages in July.
It is down from 34,575 mortgages the previous month and the situation has got significantly worse compared with last year, with levels down from 41,353 mortgages in July 2009.
The latest figure is half the amount of mortgages approved before the credit crisis hit.
It comes after warnings that home owners can expect to pay £1,700 a year more for fixed rate mortgage as banks impose the highest profit margins in two decades.
The rates paid by borrowers on these deals are almost at a seven year low but experts said they should be even lower, yet banks are refusing to pass on the cheaper costs of borrowing.
Borrowers are struggling to secure significant deposits of at least 25 per cent to secure the best mortgages rates.
They are also concerned about making large financial commitments amid widespread job insecurity and the rising cost of living.
Ed Stansfield, chief property economist at Capital Economics, said it is difficult to see what would boost the housing market amid the gloom.
“The latest mortgage lending snapshot from the BBA suggests that growing pressure on household finances, rising fears about job security and still-tight lending criteria are depressing activity in the housing market,” he said.
“The renewed weakness of mortgage demand in 2010 has been a key factor in explaining why the pace of house price rises has slowed sharply since the turn of the year and, on some measures, now begun to go into reverse.”
Average house prices dropped 0.5 per cent in July to just under £170,000, according to Nationwide. Economists have predicted that prices could fall a further 20 per cent if confidence fails to pick up.
David Dooks, statistics director at the BBA, said demand for mortgages continues to be “subdued”.
He explained: “The greater availability of properties for sale and slowing house price growth have not yet fed through to increased house purchase approvals.
“Consumer credit outstanding continues to reflect high repayments together with pressure on household finances and job uncertainty while companies are tending to retrench and reduce their bank borrowing.”
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Comments
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How did the CML members fare for the same month?0
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what does approving 1,000 mortgages a day in one month do to house prices?
probably not very much when there are still 80,000 house sales going through every month
next...0 -
What was it in June/July 2007?Not Again0
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Makes me glad I had my mortgage sorted before all this started. Imagine the hassle of getting one now.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0
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i'm sure that doire will be able to come back with an intelligent reply to your post... no wait... :eek:
Ahem...
what do you think about house prices being 6.6% off peak - why don't you discuss that instead of trying to discredit some guy that you'll never meet and is probably much more succesful than you'll ever be...
That's what you said a min ago?0 -
and this is what i posted on this very thread that you deliberatly missedGraham_Devon wrote: »Ahem...
That's what you said a min ago?
it's not my fault you're slow mr Muddlewhat does approving 1,000 mortgages a day in one month do to house prices?
probably not very much when there are still 80,000 house sales going through every month
next...0 -
http://www.telegraph.co.uk/finance/personalfinance/7962555/Banks-approve-just-1000-mortgages-a-day.html
Banks are approving just 1,000 mortgages
Glad to see banks working weekends and a 33.5 day month.:)0 -
thats a startleing fact doire.
Banks are approving just 1,000 mortgages a day as they clamp down on who they will lend to, new figures have suggested.
”
nobody can get a morgage round near me. i think its because banks know house prices are gonna keep falling. what other possible explanation is their0
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