Mortgage approvals 'to remain static'

Posted: 01 Jul 2010 10:32:28 GMT

The number of mortgage approvals seen in the UK is likely to remain stable for the rest of the year, it has been suggested.

According to Timothy Lambert, head of consulting at Ducalian, increases seen at the start of 2010 will tail off.

His comments followed the release of figures by the Bank of England, which showed that the number of loan approvals for home purchases in May totalled 49,815.

This was slightly lower than the April figure of 49,828.

Mr Lambert said: "We believed that the rate of mortgage approvals were high for the start of this year and forecast that they would drop and possibly remain static throughout the remainder of 2010."

He added that the reduction in home loan approvals was mainly a result of rising unemployment and economic uncertainty.

The expert went on to note that banks are cautious in terms of valuations and credit is only readily available to those with a good track record in managing debts.


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