24 July, 2008

According to the released figures for mortgage lending in June by the British Bankers’ Association (BBA), the number of new home loans approved by the UK’s leading lenders fall up to 23% in a month.

BBA lenders passed 27,499 new home loans in May, but the figure fell down to 21,118 in June, representing a 66.9% downfall on the same period of 2007.

The annual fall rate is highest ever since BBA’s records began in September 1997 and the downturn is gathering pace in the UK’s housing market.

The BBA’s director of statistics, David Dooks, says that the slowing property sales and credit crunch mean that the whole mortgage market is likely to become least active since the early 1990’s.

However according to Mr. Dooks the net lending has increased by 12% over the last year and it will continue the significant numbers of people remortgaging.

Other figures from the BBA for June revealed that the number of spending on cards are declining and also borrowing on personal loans and overdrafts are weakening.

News Source: http://www.firstchoiceloan.co.uk