12-02-2008
Mortgage approval levels fall
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
The UK's Council of Mortgage Lenders (CML) has highlighted a fall in the number of mortgage approvals.
Data released by the organisation shows that over the course of December 2007, the number of mortgage approvals decreased by 35 per cent, when compared with the same point during the previous year.
"Affordability has been stretched further in 2007 but the recent base rate cuts and the expectation of future cuts will ease debt servicing burdens in 2008," said Michael Coogan, director general of the CML, a UK-based trade association.
"The combination of subdued house price inflation and lower mortgage rates means affordability should ease slowly as the year progresses."
Between October and December 2007, the number of mortgage approvals reached a total of 225,000 - a winter season figure last seen in 1995.
According to the CML, in the UK alone, there are a total of 11.8 million mortgages in existence.