Friday, March 7, 2008
Mortgage approvals for house purchase have now fallen in ten of the last 12 months
Mortgage approvals dip in February
Mortgage approvals for house purchase were down in February, reversing January’s slight recovery. They fell 3.5% to 71,400, down from 74,000 in January, according to the latest data from Connells' survey & valuation mortgage approvals tracker. February 2008 was the weakest February since Bank of England records began in 1993. Only June 2005 was a weaker month for homebuyers taking out mortgages. Compared to February 2007, the decline in approvals is 40.5%. Mortgage approvals for house purchase have now fallen in ten of the last 12 months.
Posted by jack c @ 12:20 PM (572 views)
6 thoughts on “Mortgage approvals for house purchase have now fallen in ten of the last 12 months”
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Davros says:
The decline in approvals is 40.5% year on year.
You don’t have to be a genius to see where the market is headed in 2008.
hpwatcher says:
Good.
Borisina says:
This is good yes. Feel a bit nervous though when they say only June 2005 was a weaker month. It could be saying look what happened after that, interest rates droped and da da
talking rot says:
Lower mortgage approvals means there are fewer people with the funds to buy a house in the first place and, probably that people are experiencing difficulties in re-mortgaging. As cheap mortgages reset, people might discover they are unable to afford the higher monthly payments, with the result of a FORCED sale or, eventually, repossession.
Looks like the supply-side of the equation might start to rise soon.
The figures are rather grim too. The lowest number of mortgage approvals since, oh, the tail end of the last period when house prices declined.
Sold My Soul To The Never Never Never says:
Borisina – I think that after 2005 the banks became more aggressive and lax with their lending. I nipped into one of the demutualised building societies in Sep 2005 to query something on my bank account and walked out with a £6000 credit limit on a Visa card. I said that I didn’t want it and most importantly I DID NOT HAVE A JOB as I was looking after my 2 small children – but they insisted as I had a good credit rating according to their system. The card was interest free for a year plus a 2% reward for each time I used it. I ran it up to the limit and two weeks before the interest free period ran out I paid it all off. Looks like a lot of people may have got sold these NINJA loans.
House_prices_only_go_up says:
There is another article there how a study has shown that 72% of people were satisfied with HIPS. Guess thats another myth busted. (Sorry I don know how to post articles).