Home Loan Approvals Fall Again

Fri, 13 Mar 2009

New figures from the Council of Mortgage Lenders (CML) have revealed that mortgage approvals fell to yet another record low in January. Home loan approvals fell to just 23,400 in January, falling by 28 per cent from December’s 32,400. Although new year is usually a quiet time for the property market, it is a considerable plummet from the 48,600 new loans agreed in January last year.

The decline was felt by both movers and first time buyers . The number of loans granted to movers fell from 20,200 in December to 14,500, whilst just 8,900 loans were issued to first time buyers, down by nearly 10,000 on the same month in 2008.

The CML's director general, Michael Coogan, said, ‘The current withdrawal of many specialist, small and foreign lenders from new lending has created a huge gap in the capacity to fund mortgages to match consumer demand, and this is continuing in 2009.’

On a positive note, the number of remortgages increased. 41,000 loans were approved in December, worth a total of £5.6 billion, though that figure increased to 44,000 in January, worth a total of £6 billion.
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