27 Mar

'Drop' in home loans approved

'Drop' in home loans approved

Year-on-year figures released by the British Bankers Association (BBA) have stated that the number of loans approved for mortgage purposes have fallen.

In February, 43,870 mortgages were agreed by lenders, it said, which was a 33.2 per cent drop on statistics for the corresponding month in 2007.

However, remortgaging deals are increasingly popular among homeowners, the BBA stated, as 72,000 of these were given the green light in February, up by 5.5 per cent from the same month last year.

Statistics director at the firm David Dooks commented that the recent credit crunch has almost certainly persuaded more people to change their deals, as they look to come off variable-rate products.

"In an environment of tightening lending criteria, remortgaging - either to fix, refix, or reduce borrowing costs - has been a clear influence on mortgage data in the first two months of this year," he observed.

Governor of the Bank of England Mervyn King has remarked that he would be "surprised" if house prices are higher than they are currently a few years down the line.ADNFCR-1222-ID-18525796-ADNFCR

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