(1888PressRelease)
May 10, 2007 - Figures from the British Bankers' Association (BBA) show eight per cent fewer mortgages were confirmed in March than they were a year previously, as many Britons are anxious about the implications of overstretching themselves financially in a period of economic uncertainty.
Meanwhile, despite gross mortgage lending rising by five per cent to £18.6 billion, underlying net mortgage lending rose by just £5.5 billion, which is below the recent average of £5.5 billion.
However, the average loan approved for house purchase was up 12 per cent on last year's equivalent, suggesting some people might have put themselves at risk of repossession by taking on too much debt at the wrong time.
"Strong levels of gross mortgage lending reflect homebuyers and homeowners seeking out fixed rate mortgages as protection against rising interest rates," commented David Dooks, BBA director of statistics.
"However, in the last two months net lending has risen less sharply and, compared to the same time last year, the number of mortgages approved in March was lower, indicating that weaker demand is starting to emerge."
UK fast property purchase company National Homebuyers states this situation could spiral out of control. Director Julian King says: "As we are in contact with thousands of British homeowners, we are not surprised at the increasing volume of people who are contacting us to purchase their property quickly because they are in or predict severe financial shortfalls in the coming months.
"The interest rate hikes, increase in repossessions and increase in number of loan applications from homeowners all show that the consumer is predicting their own financial shortfall."
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