Mortgage market slacking

26/10/2007

During September period the mortgage market slowed drastically, BBA reveals more data.

Data brought forward by the British Bankers' Association (BBA) proved that the month's gross mortgage lending was only 3 per cent higher compared with September period 2006.

It could all be because of the five-interest rate increases since the last two years.

The activity of mortgage knowledgeable in September was £18.5 billion, this a monthly increase of £5.8 billion, which leaves annual growth at 14 per cent.

Director of statistics, David Dooks at the British Bankers' Association, commented, "Lower amounts of new mortgage lending and fewer loans approved for house purchase signal a weaker outlook for the mortgage market."

Temporarily, even though the maximum value of mortgage activity was up from September 2007, there were 12.1 per cent less mortgage approvals. It shows that a lower number of people were buying more costly properties, or taking out mortgages with greater loan-to-value rates.

The base rate controlled by the Bank of England reigned at 5.75 per cent for October period 2007.

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