Mortgage Approvals Decrease

The figures released by the British Bankers Association (BBA) showed that the Banks in UK approved just 33,698 mortgages in July. This comes to 1,000 mortgages a day despite the request to lend more.

In June there were 34,575 mortgage approvals, and the overall figures were significantly low when compared with last year.

The banks are reluctant to pass the low cost of borrowings even when the rates paid by the borrowers are very low on mortgage deals.

To secure a best mortgage deal, borrowers need at least 25 percent deposit which many of them are struggling to secure. Add to this, the rising cost of living and job insecurity also make concerns among borrowers.

According to Ed Stansfield, chief capital economist, Capital Economics, the latest mortgage lending snapshot from the British Bankers Association suggested that growing pressure on household finances, rising fears about job security and tight lending criteria were depressing the activities in the housing market.

Mr. David Dooks, statistics director, BBA, said that the demand for mortgages continued to be subdued. He further added that the greater availability of properties for sale and slowing house price growth have not yet helped much to an increase in house purchase approvals.

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