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Home loans: Mortgage approvals plunge by 65% | Money | The Guardian Jump to content [s] Jump to site navigation [0] Jump to search [4] Terms and conditions [8] Sign in Register Text larger smaller Search: guardian.co.uk Money Web News Sport Comment Culture Business Money Life & style Travel Environment Blogs Video Jobs A-Z Money Mortgages Home loans: Mortgage approvals plunge by 65% · Experts see little prospect of early market recovery · Buy-to-let sector also suffers from loan famine Kathryn Hopkins The Guardian, Wednesday August 27 2008 The value of mortgage approvals is at a 10-year low. Photo: Photodisc/Getty Images The crisis facing Britain's housing market was highlighted yesterday by figures showing that mortgage approvals have plummeted 65% in the past 12 months while buy-to-let lending has also declined sharply this year. Only 22,448 mortgages were approved last month, compared with 64,184 in July last year, as lenders continued to restrict mortgage availability and the value of houses fell across the country. Although the monthly figure was slightly up on the 22,369 approved in June, the figures from the British Bankers' Association showed that it was still 12,000 below the average of the previous six months. The value of mortgages approved for house purchase hit a 10-year low during the month, the BBA said, at just £3.2bn, which was 69% lower than the July 2007 figure of £10.3bn. Remortgaging was down 21% in the year to July, but still accounted for 50% of all mortgage activity. David Dooks, statistics director at the BBA, said: "The monthly numbers of approvals for house purchase, which have fallen by some two-thirds over the last year, levelled off in July. It would, however, be premature to think that the housing market will now start to recover, because overall approval activity continues to be very low." The difficulty in obtaining a mortgage also affected buy-to-let lending, which declined in the first half of 2008, the Council of Mortgage Lenders said yesterday. There were 144,600 new buy-to-let loans in the first half of 2008, down from 176,500 in the second half of 2007 and 169,500 in the first half of last year. The mortgage market is slowing as potential buyers put their purchases on hold in the hope that the market perks up. But the situation is unlikely to get better until the availability of home loans improves and house prices stop falling. Halifax said this month that the credit crunch had wiped £20,000 off the cost of an average British home in the year to July, the ca conventional loans biggest annual fall in property prices on record. Oliver Gilmartin, senior economist at the Royal Institution of Chartered Surveyors, believes that house prices will not pick up soon. "Mortgage activity appears to be stabilising although the paltry level of activity is not supportive of a near-term pick-up in house prices. "Few crumbs of comfort can be taken from recent signs that mortgage activity may have finally found a floor amid a backdrop of a stalling economy and expected rises in unemployment." The Council of Mortgage Lenders said: "The shortage of mortgage funding has limited activity across the mortgage market including the buy-to-let sector, which has a significant number of lenders that rely on wholesale funding." Opposition parties used the BBA's figures to attack the government. Justine Greening, shadow Treasury minister, said: "These figures show the extent of uncertainty in the housing market, which Alistair Darling made worse by sending out confused signals over a stamp duty holiday. "... Many people are putting their lives on hold as a result of Labour's economic incompetence. The chancellor should adopt the Conservatives' plan to abolish stamp duty for nine out of 10 first-time buyers." The BBA figures also showed that people were tightening their belts, because there was weaker deposit growth and lower credit card spending in July. Personal deposits rose by a slim £0.8bn in July, compared with an average of £2.8bn over the last six months. However, the figures revealed that people are not turning to credit cards to help them maintain spending habits. The amount of purchases by credit card dropped to £102.3m from a six month average of £104.2m. New credit card spending was £7.1bn, the lowest figure since June 2007. Repayments of £7.4bn were also the lowest in over a year. "The pressures on household budgets are reflected in the relatively weak rise in individuals' deposits and, with consumer borrowing growing only slowly it seems that consumers are acting prudently," Dooks said. Meanwhile, a report from ratings agency Standard & Poor's showed the number of Britons failing to meet mortgage repayments rose significantly in the second quarter of the year. Explainer: Home loan decline The number of new mortgages issued has stabilised, while fixed-rate and tracker deals on offer from the lenders have begun falling. It is the first glimmer of good news for estate agents in months. Will we now see the first green shoots of recovery in house prices? Don't bet on it. Yesterday's BBA figures show lending remains at near record lows. A floor in the market had to be reached, because people die, have babies, change jobs and get divorced. These people often have no choice but to move. First-timers are still shut out of the market by huge deposit requirements. Most lending activity is in the remortgage market, as borrowers with equity interest rates home loans come to the end of deals and seek a new lender. Many others are trapped at lenders such as Northern Rock, unable to move because any equity they had has evaporated. Arrears and repossession figures add to the gloomy picture. The key to a firmer loans for insurance recovery lies in the jobs market. Unemployment has risen for six months in a row. The British Chambers of Commerce predicts it could rise to almost 2m. That could be the trigger for far more serious house price personal loans for veterans falls as "forced sellers" dominate the market. Cuts in interest rates could lift private school loans no crdit confidence - but most economists are not pencilling that in until next year. Patrick Collinson and Rupert Bad Credit Bank Loans Jones About this article Close Home loans: Mortgage approvals plunge by 65% This what are official loans to governments article appeared in the Guardian on Wednesday August 27 2008 on p22 of the Financial section. It was last updated at 09:54 on August 27 2008. Printable version Send to a friend Share Clip Contact us larger | smaller Share Close Digg reddit Google Bookmarks Yahoo! My Web del.icio.us StumbleUpon Newsvine livejournal Facebook BlinkList Email Close Recipient's email address Your name Add a note (optional) Contact us Close Contact the Money editor money.editor@guardianunlimited.co.uk Report errors or inaccuracies: reader@guardian.co.uk Letters for publication should be sent to: letters@guardian.co.uk If you need help using the site: userhelp@guardian.co.uk Call the main Guardian and Observer switchboard: +44 (0)20 7278 2332 Advertising guide License/buy our content Money Mortgages · Property · Banks and building societies Business Housing market · Banking sector More news Related stories Slump in mortgage lending continues The amount of money borrowed for mortgages in July was 27% lower than the same month last year, says CML Mortgage repayment calculator Mortgage calculator: How much can I borrow? Related Aug 8 2008 Biggest house price fall since 1983 Aug 5 2008 Vincent Cable: The chancellor's gamble with Northern Rock Jul 1 2008 Mortgages: Home loan approvals plunge 64% as price fall gathers pace Jun 27 2008 Halifax comes under fire for bringing in new mortgage fee Printable version Send to a friend Share Clip Contact us Article history About this article Close This article appeared in the Guardian on Wednesday August French Mortgages Loans Insurance Bridging Finance 27 2008 on p22 of the Financial section. It was last updated at 09:54 on August 27 2008. Share Close Digg reddit Google Bookmarks Yahoo! My Web del.icio.us StumbleUpon Newsvine livejournal Facebook BlinkList Email Close Recipient's email address Your name Add a note (optional) Contact us Close Contact the Money editor money.editor@guardianunlimited.co.uk Report errors or inaccuracies: Student Loans For Fire Fighters reader@guardian.co.uk Letters for publication should be sent to: letters@guardian.co.uk If you need help using the site: userhelp@guardian.co.uk Call the main Guardian and Observer switchboard: +44 (0)20 7278 2332 Advertising guide License/buy our content Latest news on guardian.co.uk Last updated less than one minute ago News Europe threatens sanctions against Russia Sport Gerrard out of World Cup qualifiers Our selection of best buys Mortgages Credit cards Loans Lender Overall Cost for Comparison (APR) Yorkshire BS 7.0 More HSBC 6.5 More Newcastle 7.3 More See more mortgage best buys Get a personal quote Name BT Rate BT Period Capital One BT Exclusive 0% Until 01/12/2009 More Virgin Credit Card 0% 15 mths More Barclaycard Platinum 'As on TV' 0% Until 01/11/2009 More See more credit cards best buys Compare over 300 credit cards Provider Typical APR Moneyback Bank Loan 8.4% More Alliance & Leicester Personal Loan 8.7% More Halifax Personal Loan (Semi-exclusive) 8.8% More See more loan best buys Compare over 500 loan providers Mortgage calculator How much can I borrow? 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That all depends on Conservatory Low Rate Loans England what you read Dec 28 2007 Grim mortgage data makes cut in loan rates more likely Banks under pressure Jul 29 2008: Customer deposit funding as a percentage direct loans goverment of lenders' total funding has been in decline since 2000 More interactive License/buy our content | Privacy policy | Terms & conditions | Advertising guide | Accessibility | A-Z index | Inside guardian.co.uk | About guardian.co.uk | Join our dating site today guardian.co.uk © Guardian News and Media Limited 2008 Go to: guardian.co.uk home UK news World loans taken on whole life poicy news Comment is free blog Newsblog Sport blog Arts & Entertainment blog In pictures Video Archive search Arts & entertainment Books Business EducationGuardian.co.uk Environment Film Football Jobs Katine appeal Life & style MediaGuardian.co.uk Money Music The Observer Politics Science Shopping SocietyGuardian.co.uk Sport Talk Technology Travel Been there Email services Special reports The Guardian The Northerner The Wrap Advertising guide Compare finance products Crossword Events / offers Feedback Garden centre GNM Press Office Graduate Bookshop Guardian Ecostore Guardian Films Headline service Help / contacts Information Living our values Newsroom Notes & Queries Reader Offers Readers' editor Soulmates dating Style guide Syndication services Travel offers TV listings Weather Web guides Working for us Guardian Weekly Public Learn Guardian year auto loans back issues Observer back issues Guardian Professional Share Close Digg reddit Google Bookmarks Yahoo! My Web del.icio.us StumbleUpon Newsvine livejournal Facebook BlinkList Email Close Recipient's email address Your name Add a note (optional) Contact us Close Contact the Money editor money.editor@guardianunlimited.co.uk Report errors or inaccuracies: reader@guardian.co.uk Letters for publication should be sent to: letters@guardian.co.uk If you need help setting up loans on plcash using the site: userhelp@guardian.co.uk Call the main Guardian and Observer switchboard: +44 (0)20 7278 2332 Advertising guide License/buy our content      



Gulf Times va loans questions – Qatar’s top-selling English daily newspaper - Finance bridge loans & Business Advanced Search Qatar Gulf/Arab World Americas Britain/Ireland Europe/World India Pakistan/Afghanistan SriLanka/Bangladesh Philippines/East Asia Opinion Islam Finance & Business Sport Features Classifieds Back Issues Feedback Contact Us Site Map About Us Home:Finance & Business British new loans in July languish near record lows Published: Wednesday, 27 August, 2008, 08:18 AM Doha Time LONDON: British approvals for new home loans fell 65% englewood loans on a year ago in July to hold near a record low and the British Bankers’ Association said yesterday it was not expecting college student loans survey a housing market recovery soon. The survey artist loans added to evidence pointing to a sharp downturn in a once red-hot property payday loans no employment verification market and reinforced expectations that the next move in interest rates will be down as Britain flirts with its government small business loans first recession since the early 1990s. The BBA said mortgage salliemae loans approvals totalled 22,448 very bad credit loans last month, just above June’s series low of 22,369 but almost 12,000 below the average of the last six months. “While it is possible, but by no means certain, Britannia Building Socisty Loans that mortgage approvals have hit their floor, with the economy teetering on the edge of recession and lending criteria still tight, mortgage demand is likely to remain at current low levels for some time,” said Capital Economics property analyst Seema Shah. The Council of Mortgage Lenders said new Wisconsin Cash Advance Payday Loans mortgages

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