Monday, September 29, 2008
Large fall in mortgage lending but its amazing that anyone bought in August!!
Mortgage lending collapsed in August, according to the latest figures from the Bank of England. Only £143m was lent by banks and building societies, just 5% of July's lending figure and only 2% of the lending in August 2007. August is traditionally the quietest month for house sales. But the Bank's figures also show that 32,000 new mortgages were approved in August, a new record low and 70% fewer than a year ago. This suggests that the fall in sales and prices will continue into next year.