Loan Approvals Fall as First Time Buyer Deposits Rise

Fri, 16 Jan 2009

The average deposit put down by a first time buyer reached its highest level since records began in November, according to new figures from the Council of Mortgage Lenders . First time buyers put down a deposit of 18 per cent of a property’s value in November – the highest level since the Council began its records 35 years ago. In a further sign of the difficulty faced by first time buyers, the number of loans approved fell by 19 per cent in October to just 12,400 – down by 57 per cent on the same month in 2007. Gross mortgage lending also dropped significantly, by 24 per cent to £14.2 billion, representing a 53 per cent decrease on the previous year.

In better news for first time buyers, the organisation did reveal that repayments are beginning to reflect the Bank of England’s interest rate cuts. As of November, repayments accounted for 18.2 per cent of a first time buyer’s income, the lowest level since February 2007.

A CML spokesperson said that the governments’ actions have failed to improve the situation. Whilst the interest rate cuts have seen repayments fall, banks are also suffering from a decrease in capital as the flow of savings into banks and building societies dries up.
add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.

 

 

Income Protection Insurance
Get an instant quote with the award winning company

Paying Too Much?

7 out of 10 people are paying too much for their mortgage. To find out if you're one of them click here or fill out a FREE no obligation enquiry form