There are absolutely no two ways about the fact that the current housing slowdown, coupled with tighter lending conditions that have been fuelled by the global credit crunch, has swept across the UK in the past few months. The Bank of England has stated that the number of new mortgage approvals has definitely fallen again of late.
A statement of the officials of the Bank of England indicates that, for almost seven consecutive months, the level of mortgage approvals has been falling. Compared to 81,000 approvals for November, only about 73,000 mortgages were approved for the purchase of homes in December. According to industry experts, there is an affordability crisis hitting first-time buyers at present.
Even in specialist sectors - like ‘buy to let’ and equity release - also the level of mortgage approvals fell in December, although re-mortgage approval levels rose slightly, probably due to an increase in the number of re-mortgage applications owing to the interest rate cut. Your credit rating and circumstances determine which finance options are open to you, as some methods of finance are more expensive than others.
Up to December, the average number of total Home loans approvals over a six-month was 262,000, but in December, the figures fell significantly, standing at just 226,000. In the opinion of experts, these figures are an indication that the housing market is continuing to slow down, the slowdown rate being significantly greater than that seen in 2005. The Bank of England has stated that the number of new mortgage approvals has definitely fallen again of late.
The slowdown in the housing sector, in the opinion of an industry official, was having an impact on all areas of credit, a factor that would be taken into account at the next Monetary Policy Committee meeting. He added that, in February, as a result of this data, the Bank of England would most likely cut the interest rates again and although re-mortgage approval levels rose slightly, probably due to an increase in the number of re-mortgage applications owing to the interest rate cut. Your credit rating and circumstances determine which finance options are open to you, as some methods of finance are more expensive than others.
Though many dealerships offer finance, this form of financing can be pretty expensive. Oftentimes, the only way to get a newer vehicle is to resort to dealerships that offer their own finance to people with bad credit, and for those with no other options due to their credit rating. According to industry experts, there is an affordability crisis hitting first-time buyers at present.
The affordability issues, that first-time buyer’s face are the main concern of officials from the Royal Institute of Chartered surveyors. They say that there is no let up in the situation even though new measures - like higher deposit requirements - are being brought in by some lenders. According to the Financial Services Authority, in case lenders continue to tighten their lending and eligibility requirements, around a million people could start struggling when it comes to repaying their Home loans.
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