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Mortgage approvals down on last year
27 May 2008
Compared to this time last year mortgage approvals have decreased by nearly 40 per cent, reports Reuters.
As the credit crunch has impacted on people's finances, mortgage lenders have either withdrawn deals completely or tightened the application criteria of its products to avoid lending to risky customers.
While the number of mortgage application refusals is rising, mortgage approvals are falling because less people are looking to move home.
According to a report by Fool.co.uk, 13 per cent of people have cancelled plans to move until the housing market situation has become clearer.
"Pressures on household finances, stalling house prices and tighter lending criteria in response to lower liquidity are all constraining demand for house purchase and equity withdrawal loans, which are both well down on levels last year," the British Bankers Association director of statistics David Dooks told Reuters.
According to the Royal Institution of Chartered Surveyors (Rics) house sales could fall by as much as 40 per cent this year.
