25-01-2008
Mortgage approval levels weaken
News by Adfero for Simply Business - independent providers of public liability insurance, commercial finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
New figures released by the British Bankers Association (BBA) has detected a further deterioration in mortgage approval figures, it has been claimed.
Data released by the BBA shows that over the course of December, mortgage approval levels at the UK's leading banking institutions fell to a low of 42,088.
Moreover, the physical amount advanced fell to £15.1 billion.
"Mortgage lending weakened notably in the second half of 2007 as the credit crunch impacted on banks' ability to lend," said David Dooks, statistics director for the BBA.
"At the same time, demand for mortgages also softened in the face of increased borrowing costs and lower disposable income."
December's mortgage approval rating is the lowest recorded since records began in 1997.
In related news, analysts are again calling for interest rates to be reduced further from their current level of 5.5 per cent.