This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7326000.stm
The article has changed 11 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| Mortgage approvals at 13 year low | Mortgage approvals at 13 year low |
| (10 minutes later) | |
| The continuing decline in activity in the UK property market has been underlined by the latest Bank of England figures on mortgage lending. | The continuing decline in activity in the UK property market has been underlined by the latest Bank of England figures on mortgage lending. |
| The number of new mortgages approved for house purchase fell slightly in February to just 73,000, said the Bank. | The number of new mortgages approved for house purchase fell slightly in February to just 73,000, said the Bank. |
| That was a 39% drop on the same month a year ago, and leaves prospective mortgage lending at its lowest level for 13 years. | That was a 39% drop on the same month a year ago, and leaves prospective mortgage lending at its lowest level for 13 years. |
| Housing equity withdrawal also slumped in the last quarter of 2007 to £7.3bn. | Housing equity withdrawal also slumped in the last quarter of 2007 to £7.3bn. |
| Slowdown | |
| The figures illustrate the rapid contraction of mortgage lending due to high prices driving away first-time buyers, and the credit crunch which has made it more difficult for banks and building societies to raise the money needed to lend to customers. | The figures illustrate the rapid contraction of mortgage lending due to high prices driving away first-time buyers, and the credit crunch which has made it more difficult for banks and building societies to raise the money needed to lend to customers. |
| The level of activity in the housing market will slip further over the coming months Simon Rubinsohn, Rics | |
| Borrowing for house purchase has gone through a sharp slowdown since last summer and the bank's figures also show that remortgaging, which has been more buoyant recently, also dipped in February. | Borrowing for house purchase has gone through a sharp slowdown since last summer and the bank's figures also show that remortgaging, which has been more buoyant recently, also dipped in February. |
| That month the number of new loans approved for people who are staying put, but moving their mortgage deals to new lenders, fell to 111,000 from 118,00 in January. | That month the number of new loans approved for people who are staying put, but moving their mortgage deals to new lenders, fell to 111,000 from 118,00 in January. |
| "The likelihood is that the level of activity in the housing market will slip further over the coming months as mortgage lenders either temporarily close their doors to new borrowers or lift interest rates," said Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors (Rics). | |
| Home owners have also become less keen to cash in on the inflated value of their homes to spend on other things. | Home owners have also become less keen to cash in on the inflated value of their homes to spend on other things. |
| With house prices now falling in many areas, equity withdrawal in the last quarter of 2007 fell by 33% compared to the previous three months, and was down by nearly half on the same period twelve months before. | With house prices now falling in many areas, equity withdrawal in the last quarter of 2007 fell by 33% compared to the previous three months, and was down by nearly half on the same period twelve months before. |
| It is now at its lowest level for nearly three years. | It is now at its lowest level for nearly three years. |