23-04-2008
Slump in bank mortgage approvals
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
The effects of the credit crunch are continuing to bite the UK's largest banks, with new figures showing a slump in mortgage lending.
According to research collated by the British Bankers' Association (BBA), mortgage approvals at Britain's biggest banks dropped by 18 per cent in March, compared with the previous month.
During March, there were just 35,417 new mortgage approvals - a 46 per cent drop compared with the same month last year and the lowest monthly figure since September 1997.
BBA statistics director David Dooks said: "The consequences of low banking sector liquidity show up clearly in March data; reduced product ranges and tighter criteria resulted in slower mortgage lending and significantly fewer loan approvals."
Earlier this week, the Bank of England outlined a plan to add extra liquidity into the mortgage market - by agreeing with banks to swap risky mortgage debts with secure government bonds.