Mortgage approvals down again in September

25-Oct-2007

The number of loans approved for house purchase in September fell to the lowest level seen for the month since 2000, new figures from the British Bankers' Association (BBA) have revealed.

House purchase approvals were 27 per cent down year-on-year, the BBA has announced, indicating that it remains a struggle for first time buyers to get onto the first rung of the property ladder.

While the number of buyers seeking parental help is on the increase, according to recent research from Scottish Widows, the figures suggest that many are still failing to find any way of buying a home.

There were 160,879 mortgages approved in September, with the average loan for house purchase now standing at £152,300, according to the BBA.

This is some eight per cent higher than the average seen in September 2006, indicating that higher income multiples and a larger deposit are often now required in order to purchase a property.

"Lower amounts of new mortgage lending and fewer loans approved for house purchase signal a weaker outlook for the mortgage market, particularly if loan supply reduces in the aftermath of the recent financial markets difficulties and borrowing costs remain at current levels," commented BBA director of statistics David Dooks.

""The slowdown in the housing market continues to worsen with higher interest rates being the root cause of this slowdown," said the Royal Institution of Chartered Surveyors' senior economist David Stubbs.

"However, their impact is being magnified by the withdrawal of some mortgage products by banks and building societies, as the problems in financial markets persist," Mr Stubbs added.

Market uncertainty could be attracting buyers
http://www.firstrungnow.com/first-time-buyer-news/market-uncertainty-could-3571.aspx

Lending up in August as fixed-rates fall in September
http://www.firstrungnow.com/first-time-buyer-news/lending-up-in-august-3569.aspx

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