Insurance News Archive

Mortgage approvals 'low'

Mortgage approvals remained low last month, it has being claimed.

According to the British Bankers' Association (BBA), net mortgage lending rose by £3.6 billion during the month.

The body claimed this figure is more than in August but below the average for the previous six months.

It added that the number of approvals for property purchases remained low but Remortgaging was slightly higher.

Consumer credit was subdued, rising by £100 million, while personal deposit growth was stable, according to the BBA.

BBA statistics director, David Dooks, said the figures were not surprising ahead of the government's banking support announcements.

"Compared to a year ago, the mortgage environment has changed significantly, with supply restricted as a consequence of the situation in financial markets and demand at a much reduced level," he added.

The statement issued by the BBA continued that gross lending in the month was 13 per cent lower than in August and more than one-third (39 per cent) less than it was the same time last year.

According to the BBA, it is the voice of the banking industry in the UK.

28 Oct 2008