BBA records mortgages dropping by third

Posted: 31 Dec 2008 08:31:22 GMT

The British Banking Association (BBA) has published research showing a significant drop in the number of mortgages approved throughout November.

Mortgage approvals for last month, once seasonally adjusted, reached only 69,866 - down 28 per cent from 96,609 in October.

Not only does the drop represent more than a quarter sliced off October's figures but also a 33 per cent fall from the average number of approvals registered for the past six months.

BBA statistics director David Dooks said: "The 1.5 per cent November reduction in Bank Rate caused lenders to re-assess product ranges and borrowers to re-consider future borrowing costs, so consequently there was another drop in market activity.

"Volumes of mortgage approvals reached new lows and, with house prices still falling, the encouragement of lower costs had not filtered through by the month-end, largely because people remain concerned about the impacts of the rapidly slowing economy on their personal finances."

With so few mortgages approved it is becoming increasingly difficult to sell a property, so those homeowners that are hoping for a quick sale could benefit from selling online, which could attract more buyers than a traditional estate agent.



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