Mortgage approvals down 13%
Tuesday 25 September 2012
Related articles
Mortgage approvals for house purchases were 13 per cent lower than a year ago in August and other types of personal borrowing remain “subdued”, a high street banking report showed today.
There were 30,533 such mortgage approvals worth £4.8 billion last month, and although the figures are lower than a year ago they show a small upturn on just under 29,000 approvals in July worth £4.5 billion, the British Bankers' Association (BBA) report showed.
The Bank of England and the Treasury's £80 billion “funding for lending” scheme was fired into action at the beginning of last month to unclog the flow of credit to households and businesses.
There have been signs since of lenders stepping up competition around mortgage rates, although much of this has been aimed at borrowers with larger deposits.
BBA statistics director David Dooks said that consumers are continuing to act “conservatively” in the weak economic environment, by paying down their debts and building up their savings.
He said: “Household mortgage approvals are improving slightly but unsecured borrowing continues to be subdued.”
Total mortgage approvals have been creeping back up from a low point in June, which saw the smallest number of approvals the BBA had in its records, which stretch back to 1997.
Within the latest figures, there were 17,558 re-mortgage approvals worth £2.4 billion, showing an increase compared with July but coming in slightly below the six-month average of just over 17,800 approvals.
Mortgage lenders have tightened their borrowing criteria amid the tough economy and raised some of their rates in recent months, blaming the increased cost of funding a mortgage, leading to concerns that many existing home owners will find it tougher to switch deals.
The latest report also showed that non-mortgage borrowing remains relatively weak, and the outstanding level of unsecured borrowing from the banks has contracted by 3.1 per cent over the year to August.
A long-standing trend of people paying off more on their credit cards than they spent continued, with new spending increasing slightly to £7.1 billion in August, but repayments totalling £7.4 billion.
Meanwhile, net personal loan and overdraft lending saw a £434 million decrease in amounts outstanding in August, compared with a £368 million drop in July.
The BBA said that inflows into cash Isas have continued to be strong, leading to a rise in all personal deposits of 5.8 per cent over the year to August.
The tax-free status of Isas has been particularly attractive to consumers as people have struggled to find accounts to give them real returns on their savings amid high inflation and the Bank of England maintaining the base rate at a record 0.5 per cent low.
Personal deposits saw a net increase of £4.2 billion in August, in line with the previous month.
Net lending to non-financial businesses saw a £1.5 billion decrease in August, slightly lower than the six-month average of a £1.6 million drop.
Mr Dooks said: “Weak trading conditions persist so companies may well remain reluctant to borrow for investment or expansion in these conditions.”
PA
- 1 'Sickening, deluded and unforgivable': Bloody attack brings terror to capital’s streets
- 2 Mothers' diets may harm IQs in two-thirds of babies
- 3 Far-right French historian, 78-year-old Dominique Venner, commits suicide in Notre Dame in protest against gay marriage
- 4 Eyewitness gives extraordinary account of her confrontation with Woolwich attackers
- 5 Woolwich attack: The EDL might have a sinister plan as a soldier is murdered in suspected Islamic terrorist attack
Get your summer started with British Military Fitness
BMF is the UK’s biggest and best loved outdoor fitness classes
Visit York
Find out what The Independent's resident travel expert has to say about one of the most beautiful small cities in the world
Enter the latest Independent competitions
Win anything from gadgets to five-star holidays on our competitions and offers page.
Business videos from commercial thought leaders
Watch the best in the business world give their insights into the world of business.
Day In a Page
Clerkenwell, EC1V
Tetbury, Gloucestershire
Stoke Newington, N16
Wapping, E1W
Norwich, Norfolk, NR12
Bassett Road, North Kensington, W10
South Gloucestershire, GL12,
Greenwich, SE10
Maida Vale, W9
Waltham Abbey, Essex EN9
Clapham, SW4
Torquay, Devon TQ1
Canonbury, N1
Canterbury, CT1
Haywards Heath, RH16
Wandsworth, SW8
Peckham, SE15
Southend-on-Sea, SS1
Battersea, SW11
Woodbridge, Suffolk IP13
Stratford, E15
Keswick, Norwich NR4
Stamford Brook, London W12
Claverton Down, Bath BA2
Gasthorpe, IP22
Battersea, SW11
Brockley, SE4
Cambridge, CB1
Oxford, OX4
Near Tatworth, Somerset TA20
Hoxton Wharf, London N1
Axminster, Devon
Shepherds Bush, W12
Chingford, E4
Tonbridge, Kent, TN10
Fulham, SW6
Sydenham, SE20
Acton, London W3
Aylesbury, Bucks HP19
Hackney, London E8
Wimbledon, SW19
Chiswick Park, London W4
St Erth Praze, Cornwall TR27
Queen's Park, London NW6
Norton Sub Hamdon, Somerset TA14
Ladbroke, NW10
Bethnal Green, London E2
Norwich Road, Ipswich, IP1
Battersea, SW11
Lower Ufford, Suffolk IP13
Clerkenwell, EC1V
A two-bedroom loft apartment with a large reception room. £615,000
Tetbury, Gloucestershire
A four-bedroom house with stone-walled gardens. £438,000
Stoke Newington, N16
A modern home of almost 1,000sq ft is close to Stoke Newington's high street. £499,950
Wapping, E1W
One-bedroom flat close to the City and St Katharine’s Dock. £314,995
Norwich, Norfolk, NR12
A five-bedroom bungalow in Hoveton with riverside garden and mooring dock, £550,000
Bassett Road, North Kensington, W10
A refurbished one-bedroom flat with south-facing reception and high ceilings. £579,950
South Gloucestershire, GL12,
Four-bedroom detached period cottage in Wotton-Under-Edge. £625,000
Greenwich, SE10
A four-bedroom three-storey Victorian home with a south facing garden. £849,950
Maida Vale, W9
A two-bedroom ground-floor apartment which opens onto attractive gardens. £375,000
Waltham Abbey, Essex EN9
A four-bedroom Grade II-listed house in Nazeing with large gardens. £550,000
Clapham, SW4
A three-bedroom flat within a quiet communal courtyard in Clapham Old Town. £665,000
Torquay, Devon TQ1
A five-bedroom home plus a separate flat above Torquay Harbour. £640,000
Canonbury, N1
A new-build two-bedroom house with a roof terrace in a gated mews. £550,000
Canterbury, CT1
Three-bedroom house with a private garden and conservatory. £355,000
Haywards Heath, RH16
A new two-bedroom flat located in central Haywards Heath. £200,000
Wandsworth, SW8
Three-bedroom early-Victorian terraced house. £635,000
Peckham, SE15
A modern four-bedroom house in a converted stable within walking distance to Peckham Rye. £695,000
Southend-on-Sea, SS1
Four-bedroom semi-detached house within walking distance of the sea. £299,995
Battersea, SW11
Three-bedroom house in a quiet residential area within close distance to Battersea Park. £450,000
Woodbridge, Suffolk IP13
A four-bedroom Georgian gatehouse with a self-contained annexe. £525,000.
Stratford, E15
A one-bedroom flat close to Stratford station and Westfield. £250,000.
Keswick, Norwich NR4
A three-bedroom semi-detached cottage in the village of Keswick. £335,000.
Stamford Brook, London W12
A four-bedroom house with a decked garden and a roof terrace. £775,000.
Claverton Down, Bath BA2
A contemporary four-bedroom house close to Bath University. £760,000.
Gasthorpe, IP22
A three-bedroom cottage within commuting distance of London, Norwich and Cambridge. £250,000
Battersea, SW11
Two-bedroom flat close to Battersea Park. £415,000
Brockley, SE4
A three-bedroom flat with two reception rooms and a private garden. £359,950
Cambridge, CB1
A new one-bedroom flat in the city centre of Cambridge. £270,000.
Oxford, OX4
A two-bedroom terrace house with a garden near Radley station. £192,500.
Near Tatworth, Somerset TA20
A two-bedroom cottage with a sun room and gardens in South Chard. £350,000.
Hoxton Wharf, London N1
A two-bedroom fifth-floor flat overlooking Regent's Canal. £470,000
Axminster, Devon
A three-bedroom Devon Longhouse overlooking the Blackdown Hills. £475,000.
Shepherds Bush, W12
A three-bedroom semi-detached house with a roof terrace and garage. £750,000
Chingford, E4
A brand new four-bedroom house with a family-sized rear garden. £375,000
Tonbridge, Kent, TN10
A three-bedroom semi-detached house with original features including fireplaces and wooden flooring. £399,950
Fulham, SW6
A modern two-bedroom flat split across two floors and close to several public transport links. £595,000
Sydenham, SE20
A three-bedroom terraced home with modern interiors and a rear garden. £399,950
Acton, London W3
A split-level flat with three bedrooms close to North Acton Tube station. £375,000
Aylesbury, Bucks HP19
A lakeside one-bedroom flat in Whinchat with stunning views. £125,000.
Hackney, London E8
A one-bedroom flat with an open-plan reception/kitchen and private balcony. £315,000.
Wimbledon, SW19
A three-bedroom mid-terraced home with a rear garden. £700,000
Chiswick Park, London W4
A bright two-bedroom garden flat between South Acton and Chiswick Park. £499,950.
St Erth Praze, Cornwall TR27
A listed four-bedroom farmhouse with stables, set in four acres. £500,000.
Queen's Park, London NW6
A three-storey family home with four bedrooms and an extended kitchen/diner. £995,000.
Norton Sub Hamdon, Somerset TA14
A three-bedroom Hamstone cottage in the rolling Somerset countryside. £430,000.
Ladbroke, NW10
Two-bedroom garden flat located between Ladbroke Grove and Queen’s Park. £495,000
Bethnal Green, London E2
A one-bedroom flat with a separate kitchen/diner and balcony. £285,000.
Norwich Road, Ipswich, IP1
An Edwardian house with four bedrooms and a large rear garden. £299,950.
Battersea, SW11
A luxury one-bedroom apartment on the first floor of a converted Victorian house. £425,000.
Lower Ufford, Suffolk IP13
A bright and spacious three-bedroom house near Woodbridge. £585,000.
Edward VIII’s phone calls - and how MI5 bugged them
Hollywood's random acts of red-carpet kindness
Not secure any more: G4S boss heads for exit at last
How to say ‘I’m a sellout’




Comments