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Mortgage approvals down almost 60% year-on-year

Mortgage approval activity for January increased slightly to £7.6bn but fell almost 60% from the same time last year, figures from the British Bankers’ Association reveals.

The January figure is up from the £7.3bn recorded for approved mortgage loans in December, but is markedly down by 59.4% from the previous year.

House purchase loans were up marginally at £2.9bn, from £2.7bn in December.

The January figure is down 56.1% from the same time last year.

Gross mortgage lending remained flat at £9.9bn, a decline of 45.2% from January 2007.

Net mortgage lending rose by £2.9bn in January, compared to £3.3bn for the previous month.

Despite this, annual growth for net mortgage lending is up 10%.

Personal deposits fell by £2.3bn as a result of savers seeking alternative deposit products.

David Dooks, statistics director of the BBA, says: “The high street banks’ mortgage lending is still seeing double-digit annual growth, albeit in a much slower market.

“Lower borrowing costs and falling property prices have underpinned demand at these lenders, who are providing over two-thirds of all new mortgage lending.”

He adds: “There is only limited demand from households for unsecured credit, while a fall in their deposits in January reflects a tendency to draw on cash or to move into alternative financial products.”


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Foxy’s Financials – The Bristol Surge

As I sometimes seem to write myself into exhaustion we have a guest
writer today which I reckon should be a regular event, not just to get
me off the hook but because our Bristol office is very important to us
and we should not forget there is life outside London! So here is the
wonderful Sarah Fox-Clinch.


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