Snow joke - Mortgage approvals down

Graham_Devon

Mortgage approvals fell in January. 14% fewer loans were approved in January 2013 compared to January 2012.

Snow is to blame, obviously. Think snow was to blame last year too.

Anyway, the BBA state that loan and overdraft repayments outstripped new borrowing also in January....which has only got ot be a good thing?

Poor weather in January curtailed mortgage approvals while borrowers continued to play safe on loans and overdrafts, the major banks have said.

There were 32,288 mortgages approved for house purchases during the month, down on December and 14% lower than January 2012.

The British Bankers' Association (BBA) also said that loan and overdraft repayments outstripped new borrowing.

Personal loan levels are almost half of their peak in 2007-08, the BBA said.

"January's severe weather impacted adversely on what was already a subdued picture of borrowing demand from households and businesses," said David Dooks, BBA statistics director.

"While general economic growth stalls, low consumer and business confidence generates a natural tendency to restrain borrowing appetite, repay borrowing where possible and to build up cash and savings as a buffer."

http://www.bbc.co.uk/news/business-21572869

Amazing how snow effects mortgage approvals, yet all other areas of finance and banking just continues as normal!

chucky

Graham_Devon wrote: »

Mortgage approvals fell in January. 14% fewer loans were approved in January 2013 compared to January 2012.

Snow is to blame, obviously. Think snow was to blame last year too.

If you didn't get it last year it's not a surprise that you don't get it this year.

Mortgage approvals down, are sales transactions down?

Rinoa

The weather no doubt played a part but these figures do not include mutuals, who have steadily increased their market share at the expense of banks this past 12 months ~ especially since the introduction of FLS.

We'll know more when the BoE issue full figures in a week or so.

Mr._Pricklepants

This snow joke never fails to make me ROFL.

IveSeenTheLight

Mr._Pricklepants wrote: »

This snow joke never fails to make me ROFL.

Got to say it's better than the non-seasonality believers

Harry_Boyle

"borrowers continued to play safe on loans and overdrafts, the major banks have said."
"Personal loan levels are almost half of their peak in 2007-08, the BBA said. "
"low consumer and business confidence generates a natural tendency to restrain borrowing appetite, repay borrowing where possible and to build up cash and savings as a buffer"


Sounds good.