Mortgage approvals fell during September 2015, hitting their lowest point in the four months since May. Low availability of properties on the housing market is just one of the possible reasons for the drop in figures.
According to data from the British Bankers’ Association (BBA), the number of mortgages approved for house purchases was 44,489 in September, which is 14% higher than September 2014, but the lowest in the last four months. Mortgage borrowing for August reached £12.1bn, 17% greater than the same month last year. Lending for personal loans and credit cards fell in August and September, according to the report. IHS Global Insight’s chief UK and European economist, Howard Archer, believes that now Bank of England rates seem less likely to happen in the immediate future, this could have had an impact on mortgage approvals. He said:
“It may be that mortgage approvals had been lifted in recent months by a significant number of house buyers looking to move quickly to try and lock in a low mortgage interest rate before they start rising.”
Archer added that fewer properties on the market could also be responsible. Although data from the BBA is a respected source of data, it doesn’t include loans by building societies that are mutually owned, omitting around a third of mortgages.
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