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Mortgage Approvals Drop 40%


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HOLA441

http://www.ifaonline.co.uk/public/showPage...PageName=741135

Mortgage approvals drop 40%

Monday 10th March 2008: 08:00

By John Bakie

Mortgage approvals fell 3.5% in February following a slight recovery in January, according to Connells Survey & Valuation.

Seasonally adjusted figures show approvals dropped from 74,000 in January to just 71,400 in February.

Connells says last month was the weakest February since Bank of England records began in 1993. The only weaker month on record is June 2005, as the market recovered from a succession of base rate increases.

Approvals have declined 40.5% over the past year, from a high point of over 125,000 in February 2007, and have fallen for ten of the last twelve months, according to Connells.

Ross Bowen, managing director of Connells, says: “February’s fall in mortgage approvals is not as dramatic as the fourth quarter of last year, but it does reflect both reduced appetite for borrowing and a tighter supply of lending from mortgage providers.

“Money market rates have climbed again in recent weeks, keeping mortgage rates relatively high, despite February’s cut in base rates.”

Connells also claims house prices have remained flat in February at £216,143, and prices rose just 4.5% over the past twelve months, slightly above the rate of retail price inflation.

“Larger homes, and one bedroom properties dropped slightly in value. The market is showing no signs of a major correction however, and there are very few forced sellers. It’s becalmed – and that’s no surprise given the lack of availability of mortgage finance,” explains Bowen.

The Bank of England will release official figures on mortgage approvals near the end of March.

;)

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"They're not building any more land..."

I'll get me coat too, let's share a cab.

Blimey, who's asking who up for coffee? :wub:

.

In case there is room for another could I just add that wealthy foreign buyers and

bonuses from the banking sector will keep prices high.

.

ST

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And, wait for it, the "Mornington Crescent" of HPC......

"You can't go wrong with bricks and mortar".

That reminds me, did anyone watch C4's Love And Money last night?

Poor pair of love-crossed dimwits manage to lose a packet on a pub; result - distressed sale of solitary asset - house.

It was odd hearing the mantra "it's bricks and mortar" from the poor woman used over and over again in reference to liquidating a property asset rather than investing in one to try and save their bacon.

It goes to show what a hollow, "buzzwordy" term it really is; a horrible, meaningless trope most people use because they heard someone "authoritative" say it, like I did once, when I was a small naive sprout! And it's so flexible, so modern, that it's flipping 180 degrees in meaning right now...

Watch it mutate from the softheaded "something to do with solid investment", to popular associations with albatrosses, millstones, desperate last measures and horrible, car crash financial mistakes.

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It's different this time. Cash-rich foreign investors will use their record bonusses to snap up all the quality properties in good areas on the dips. Investors are in it for the long term and won't sell if prices fall - it's their pension*.

(* sounds like a fair swap to me).

Edited by ParticleMan
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