Mortgage bank loans are down by fifty-two per-cent
27/12/08
The number of mortgage loans approved by banks in the UK for home buyers went down by around fifty-two per-cent in 2008. Even though the number of mortgage approvals had gone up in November, the figure was still forty-seven per-cent down compared to December 2007.
From the BBA, David Dooks commented, “The banks approved less than half the 2007 number of loans for house purchase, reflecting falling demand from households facing greater economic uncertainty and double-digit falls in house prices over the year, which led to a wait-and-see mentality.”
These figures show signs that people were being more cautious about what they spent and borrowed in 2008.
Mr Dooks continued, “Consumer credit was very weak in December as people reined in their credit card spending, despite early sales and heavy discounting by retailers. This consumer caution was also reflected in personal deposits, which rose strongly.”
