(1888PressRelease)
November 29, 2007 - London (Ask4loan) : The figures from the British Bankers’ Association indicate that housing market in the UK is slowing down. The Association said that mortgage approvals fell to 44,105 in October. In September, 53,997 mortgage approvals took place.
The recent spate of high interest rates amidst tightening loan conditions is very much responsible for the slowing down of housing market. The lenders have increased interest rates on secured loans, mortgages and personal loans. The cost of borrowing between the banks has also increased.
David Dooks, head of statistics at the BBA said: "October's data provide evidence of a rapidly slowing mortgage market and of consumers limiting their personal borrowing.
Dooks further said that: “Pressure on household finances, the cumulative impact of interest rate rises over the last year, the expanded application of home information packs and the consequential impact of the credit crunch may well all have a part to play in suppressing current demand and supply."
In a crunch situation, the lenders are also looking for alternative ways to fund their mortgage lending. Some building societies have increased their savings rates to 7 per cent in order to attract more deposits.
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