We are still in a situation where each month, mortgage approvals are falling. In the last twelve months mortgage approvals have fallen by 13% whilst other types of personal borrowing has remained ‘subdued’.
Last month there were 30,533 mortgage approvals, with a combined worth of £4.8 billion. Although figures are lower than this time last year, there was a small upturn on just over 28,000 worth £4.5 billion according to a recent British Bankers’ Association (BBA) report.
In August of this year, the Bank of England and the Treasury’s £80 billion Funding for Lending Scheme aimed to improve the flow of credit to households and businesses. Some lenders have stepped up competition around mortgage rates, most notably Tesco with their 1.99% residential rate.
Despite this £80billion being drip-fed to the banks, the deals seem to be focused on borrowers with large deposits. There is no logic in that as we need the Government and the banks to focus on helping the much needed first time buyers. The Tesco mortgage requires a 40% deposit, which simply isn’t achievable for most home buyers. This is what will kick start the housing market.
The lowest number of monthly mortgage approvals since the BBA had records took place in June this year.
For more information on why mortgage approvals are falling, and to ensure you find the right product for your circumstances to help achieve mortgage offer contact Mortgage Savers.
October 24, 2012
Mortgage Advisor