Shock As Mortgage Approvals Down By Ten Per Cent

New figures published by UK Finance have painted a worrying picture for the future of the housing market, as mortgage approvals continue to fall.

In September this year, the number of mortgages successfully applied for fell by 10.1% versus 12 months ago. As fears over a no-deal Brexit loom, approvals have now fallen for three months in a row, providing further evidence that the country is facing a massive slowdown in housing sales.

Experts also drew attention to the worrying decrease in the number of individuals who chose to re-mortgage their home in the time since the Bank of England chose to raise interest rates in August. Futhermore, with fewer buyers in the marketplace, it is extremely likely that sold house prices will start to fall until they reach a point where buyers consider them a reasonable purchase.

“There are also signs that the hike in interest rates and nervousness around house prices due to Brexit have put people off buying, with the number of new mortgages falling to a seven-month low,” said Laura Suter, personal finance analyst at AJ Bell.

The question on many people’s minds, however, is whether the situation will continue to worsen as the deadline for Brexit approaches with many companies in both the financial and property sectors beginning to make contingency plans in case no deal is reached. A growing number of industry analysts believe that if the UK crashes out of the EU without any trade deals in place, then the country could face a recession similar in scale to the Great Depression in the 1930s.

In the current economic climate, the chances of a homeowner being able to sell their house fast are beginning to look woeful, with experts advising vendors to lower their asking price in order to incentivise buyers.

The drop in mortgage approvals also signals that prospective buyers are turning their backs on purchasing a home until the dust has cleared post-Brexit, avoiding the risk of entering negative equity if housing values begin to plunge.

Those who are desperate to sell, however, can use the services of National Homebuyers, who will provide competitive quotes for any home – regardless of its time on the market, condition or location.

Worried about falling house prices? Why not ask National Homebuyers for advice, as we buy any house. Call 08000 443 911 or request a call back to find out how much you could get for your property.