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BBA: Mortgage outlook weaker

October 26, 2007 by admin  
Filed under News, News-Mortgages

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New mortgage lending is down indicating a weaker outlook for the mortgage market.

According to the BBA, house purchase approvals last month were down 27 per cent on last year’s figure for September and were also down 21 per cent in value.

The gross mortgage lending value for September this year was at £18.5 billion, just three per cent up on the same time in 2006.

Also, last month 160,879 mortgages were approved which was down 12.1 per cent on the previous year.

David Dooks, BBA director of statistics, commented: “Lower amounts of new mortgage lending and fewer loans approved for house purchase signal a weaker outlook for the mortgage market, particularly if loan supply reduces in the aftermath of the recent financial markets difficulties and borrowing costs remain at current levels.”

He added that card spending was down in September as were repayment rates and this resulted in a rise in net borrowing although in all, demand for unsecured borrowing was low.

The BBA is a trade association for UK financial and banking services and has members in 60 different countries.

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