Mortgage approvals hit record low

News Category: Industry News

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Mortgage approvals were down to a record low in October, according to figures from the British Bankers' Association (BBA).

Approvals for house purchase declined to 44,105 during the month, from 53,997 in September. These figures represented a fall of 37.4 per cent on the year.

Meanwhile, mortgage lending is slowing down, too. Lending rose by £5 billion in October, compared to a £5.9 billion increase the month before and an average of £5.6 billion over the last six months.

Annual growth stands at 13.4 per cent.

"October's data provide evidence of a rapidly slowing mortgage market and of consumers limiting their personal borrowing," said BBA statistics director David Dooks.

"Pressure on household finances, the cumulative impact of interest rate rises over the last year, the expanded application of home information packs and the consequential impact of the credit crunch may well all have a part to play in suppressing current demand and supply."

A spokesman for the Royal Institution of Chartered Surveyors said: "These figures highlight the emerging pressures on the housing market."

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