The Number Of Mortgage Deals Dropping

Industry figures have shown that the number of new mortgage applications approved by the major banks fell again in December. British Banker’s Association (BBA) members approved 42,088 new mortgage loans last month, the lowest figure that has been seen since 1997 when the data started to be collected.

Analysts think that the easiest way to solve this problem is for the Bank of England to cut its interest rates, although this proposition is meeting opposition as well as support as the market is already in turmoil and this is almost an admission of defeat. The amount of money advanced for home purchases dropped to £15.1bn, a figure last seen in September 2005, and 10% less that December 2006.

The BBA’s figures are in agreement with recent data from the Council of Mortgage Lenders (CML), who said that gross lending fell 25% in December to £22.6bn, the lowest monthly figure since May 2005. David Dooks, BBA’s statistics director said: "Mortgage lending weakened notably in the second half of 2007 as the credit crunch impacted on banks' ability to lend, at the same time, demand for mortgages also softened in the face of increased borrowing costs and lower disposable income.

"The combination of these factors is resulting in the marked market slowdown and weakness in house prices we are now seeing," he concluded.

Among the news of reductions and falling approvals, there is some good news; the figures showed that net lending increased slightly in December, this is after redemptions and repayments have been deducted. There was also a small jump in the number of loans approved for re-mortgaging customers, with 62,771 new loans given the go ahead, compared to 59,628 in November 2007. Although if examined more closely this is not necessarily good news, people borrowing against their property is a desperate measure, one which is likely to be caused by the credit crunch and the strict measures in place to regulate unsecured lending.

The chief UK and European economist at Global Insight, Howard Archer, commented on this, saying: “The December BBA mortgage data provide yet further evidence that housing market activity is now being substantially undermined by both stretched affordability and tightening lending practices. This adds to the already intense pressure on the Bank of England to cut interest rates in February, and to enact significant further reductions thereafter."

Despite that fact that Britain’s house prices ended 2008 5-8% higher than when the year began, prices started falling during the second half of the year, under the pressure of higher interest rates. The Bank of England held its interest rates in January 2008, predictions of a February rate cut are prevalent. However Mervyn King, the Bank’s governor remarked that inflation concerns may prevent this from happening.

The competition from brokers and adviser to purchase mortgage leads from other companies is red hot at the moment because the demand for mortgage deals is falling. The lower number of customers who are actively looking for a mortgage deal, results in brokers fiercely competing for business against one another.

BBA figures showed that unsecured lending from banks remained subdued in December, while the amount of outstanding debt on credit cards rose by only £200m, a lower figure that expected because customers were repaying more than they spent.

An increase of £400m in the borrowing through loans and overdrafts was also seen in December, and consumers also stashed £1.9bn in saving accounts or investment schemes. This was a £200m increase on November, but was less than the amounts deposited during September and October into banks and building societies.

Listed below are more articles related to the above article from the "Mortgages Refinance" article category.

People interested in the above article "The Number Of Mortgage Deals Dropping" are also interested in the related articles listed below:

What Is A FHA Reverse Mortgage?

Usually referred to as a Home Equity Conversion Mortgage (HECM), a FHA reverse mortgage is a federally insured program administered by the Federal Housing Administration (FDA), which is a department of the Department of Housing and Urban Development (HUD). Simply put, this program is 100 per cent guaranteed by the government. For this reason alone, over 90 per cent of American seniors elect an FHA program over others that are available.

Refinancing A Mortgage Loan

Borrowers in distress should not go by what others have done in a similar situation. Refinancing does not always produce the same result. Each household is a separate world with a separate budget and totally different ways of spending. There are a lot of people who can not seem to find the right answer and we would like to light the way to understanding these matters a little more.

What Are The Real Benefits Of Refinancing?

Refinancing may be a good financial decision if you can seize its benefits but sometimes, its benefits may fade due to external or internal factors. So, in order to see if refinancing will be to your advantage you need to know what the real benefits of refinancing are and how and when they can be obtained.

Mortgage Lending Training

Real estate is always in demand. Hence, demand for officials in the mortgage industry is extremely high. But learning about mortgage involves not only theoretical knowledge of how to offer loans, but also ways of dealing with default in mortgage payments and foreclosure. There are training courses offered by many industries to enter the mortgage industry. One of the training courses is mortgage lending training. The mortgage lending training course includes mortgage lending, mortgage loan training and many such financial topics which are essential from the point of view of the mortgage industry.

Secured Business Loans: Commercial Mortgages

Most people think that business loans are all unsecured loans. However, it is possible to obtain secured business loans that can offer better loan terms than regular business loans with little risk for the borrower and for the lender. Commercial mortgages can provide all the funds your business needs with very reasonable loan conditions.

What happens to Second Mortgage after foreclosure on the first?

The second mortgage lender can file a civil or deficiency judgment to collect the unpaid debt. Or else, he may issue a charge-off if he fails to recover the entire loan balance after a first mortgage foreclosure.

What is a Reverse Mortgage All About?

If you are lacking funds but have a lot of money tied up in your house, you may be considering a reverse mortgage. In some situations, a reverse mortgage can be a good option. But before taking the plunge and stripping your house of equity, you will want to find out more about this product and its advantages and disadvantages.