|
 Mortgage lending has dropped by a massive 63.8 per cent, according to new figures.
In a sign that more falls in house prices are just around the corner, the number of mortgage deals completed during in May this year hit a significant low of 42,000.
The number is the lowest since comparable figures were first recorded in 1993, and make for worrying statistics.
It is possible the rate of mortgages is so low due to the banks becoming fearful of the falling property market.
If banks lend for a mortgage now the value of the house could drop soon after, meaning the bank can no longer cash in its investment if the buyer cannot repay the bank.
"The Bank of England mortgage approvals data add to the plethora of data and survey evidence showing that housing market activity is being squeezed tightly by stretched affordability and tight lending conditions," argued Howard Archer, chief economist with analysts Global Insight.
The news comes as property intelligence firm Hometrack publishes statistics confirming that house prices fell by one per cent in June, and by 3.4 per cent year-on-year.
What are Social Bookmarks?
 Email this to a friend
 Printable Version
<< Homebuyer News Archive
|
