November"s mortgage approvals rate fell by a massive 61% compared to the same period last year, according to figures published today by the British Bankers Association (BBA).
17,773 new loans were made this November, compared to 44,315 in the same month last year, and 20,767 in October. The average size of the loan was also down, dropping to £116,700. As such, the size of the average mortgage was slashed by £12,000 between October and November.
The Bank of England"s interest rate cuts, aimed in part at making borrowing more affordable, appear to have actually caused lenders to pull products. Tracker products are now virtually impossible to come by, as lenders reduce their ranges to loans with comfortable margins. Similarly, borrowers seem to be aware of the potential impact on their ability to repay the loans in the event of inevitable future rate rises.