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Thursday, 23 September 2010

Mortgage Approvals at 16 month Low

Another day brings yet another announcement of a quiet housing market. This time figures from the British Bankers Associations (BBA) shows mortgage approvals falling for the thrid month in a row for August. 31,767 mortgages were approved, down from 34,219 in July, the lowest in 16 months.

A figure below 36,000 approvals per month is considered consistent with house price falls.

Banks have undoubtedly tightened their lending criteria, which has restricted mortgage approvals, but the BBA commented that the latest figures also show a fall in demand for mortgages.

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