Friday, 28 October 2011

BORROWING DOWN AMID FINANCIAL FEARS

September saw a drop in the number of loans approved for house sales, a slight decrease from the previous month, to 33,130.

According to the British Bankers Association (BBA), concerns over family finances and job insecurity have reduced mortgage and unsecured borrowing. There was £8.4bn in gross mortgage lending by the major banks, a slight increase from the month before, and 7% more than September 2010.

However, after a slight rise in August, the level of mortgage approvals dipped. House purchase and remortgaging approvals also fell, at numbers well below the height of the housing market, which saw an average of 130,000 mortgage approvals per month.

The number of first-time buyers coming through is the lowest since November 2010, indicative of current struggles within the market.

In the face of unemployment and domestic financial pressures, households appear to be setting limits on their borrowing.


Job Fear Constrain Borrowing, Says Banks - BBC News