New figures released by the Bank of England show that mortgage lending in August sank to its lowest level since records began in April 1993. Net mortgage lending – the value of loans advanced during the month including repayments and redemptions – fell to just £143 million in August. That figure is down by more than 95 per cent on net lending in July, highlighting the dire situation of the property market.
Mortgage approvals also sank to record low levels, with just 32,000 mortgages for purchases approved during August. That figure fell below July’s record low of 33,000, and was significantly short of the six month average of 49,000. Unsurprisingly, the value of the approvals also fell to record lows, with the 32,000 approvals worth a total of £4.1 billion – down from the £4.3 billion in July and once again, significantly below the six monthly average of £6.8 billion.
Remortgage figures also slumped, with the 64,000 approvals, worth a total of £8.7 billion, falling short of the 88,000 six monthly average. Overall mortgage approvals, including those not for purchase, totalled £13.6 billion, representing a decrease of more than 50 per cent on the previous year and the lowest figure for almost seven years.
Home Loans Slump Significantly
Home Loans Slump Significantly
Mon, 29 Sep 2008
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