January mortgage approvals plunge to record low
Monday, 11 Feb 2008 12:39
Mortgages: fewer applications getting the go-ahead
Mortgage approvals are up but the market has suffered the worst January since records began, new figures reveal today.
According to Connells Survey & Valuation, the number of mortgages being given the go-ahead went up to 75,000, a rise of three per cent on the December low of 73,000.
It's the first increase in mortgage approvals since May 2007, according to the property services group.
However, Connells said the figure was still the weakest experienced in the month of January since Bank of England records began in 1994.
Since January 2007 mortgage approvals have fallen by 38 per cent, and there have been drops in numbers in ten of the last 12 months.
Ross Bowen, managing director of Connells Survey & Valuation, warned buyers should not read too much into just one month's worth of figures.
He said: "This is still the weakest market in 13 years and the ongoing impact of home information packs (Hips) following full implementation in December is unknown.
"Nevertheless Connells has seen a rise in housing stock coming onto the market and renewed interest from househunters."
Connells figures also show house prices had moved up slightly by 0.3 per cent in January. This came after a 0.6 per cent decline in figures in December.
Mr Bowen said the increase reflected the slight improvement in mortgage demand.
He added: "The latest rate cut will help to stimulate demand, but only if mortgage lenders pass on lower rates to customers."