Mortgage approvals slow
24 November 2007
Mortgage approvals in the UK slowed to a record low last month, latest figures from the British Bankers' Association (BBA) show.
The number of people getting a crucial first foot on the property ladder fell to 44,105 in October from 53,997 in September.
Meanwhile net mortgage lending rose by £5 billion last month, down from a rise of £5.9 billion in September.
Extra pressure on household finances linked the credit crunch, along with the impact of interest rate hikes and the effect of the introduction of home information packs (Hips) have been blamed for the dip.
"October's data provide evidence of a rapidly slowing mortgage market and of consumers limiting their personal borrowing," David Dooks, head of statistics at the BBA said.
"Pressure on household finances, the cumulative impact of interest rate rises over the last year, the expanded application of home information packs and the consequential impact of the credit crunch may well all have a part to play in suppressing current demand and supply," he added.
According to the Department of Communities and Local Government, average house prices in the UK now stand at £220,111.
