Banks' mortgage approvals down
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The latest figures from the British Bankers’ Association show the number of mortgage approvals were down in September.
There were 72,723 mortgage approvals in September down from 73,930 in August and lower than the six month average of 75,941.
The average value of house purchase approvals - £142,900, fell again in September but was still some 4.1% higher than a year ago.
Numbers of approvals for remortgaging have been slightly stronger in the last three months while those for equity withdrawal have fallen back slightly.
The annual growth in the banks’ net mortgage lending is 3.9%, substantially ahead of the 1.0% for the whole mortgage market in August.
Net mortgage lending increased by £1.6bn in September compared to £2.9bn in the same month in 2009 as repayments continued to hold up at fairly strong levels.
Gross mortgage lending of £8.0bn in September was 10.8% lower than a year ago.
David Dooks, statistics director at the BBA, says: “Demand for new mortgages remains low despite more properties on the market and falling house prices.
“Business borrowing continues to reflect weak demand combined with companies reducing gearing by repaying bank borrowing.”
Andrew Montlake, director, independent mortgage broker, Coreco, says: “Figures continue to remain gloomy and the expected pre-Christmas bounce has so far failed to materialise. But this is not simply a case of lack of demand.
“Whilst the fall-out from the Spending Review may make buyers more cautious, it is ever-tightening lending criteria that continues to stifle the needs of many decent borrowers who wish either to remortgage or move into their first property.
“It is a shame there are many who are unable to take advantage of some of the cheapest mortgage products we have seen, or are likely to see, for a long time.”
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