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Mortgage approvals fall by 16% over a year | |
(about 3 hours later) | |
The number of mortgages being granted by Britain's banks has fallen by 16% over the last year - the latest sign of a slowdown in the housing market. | |
According to the banking industry body the BBA, in October home-buyers had 37,076 mortgages approved - the lowest figure for 17 months. | |
The value of those mortgages fell 13% over the year to just over £6bn. | |
Separately the Nationwide Building Society announced that mortgage lending fell by almost £1bn over the last year. | |
The figures from the BBA, show that mortgage approvals peaked at 48,649 in January this year. | |
"The BBA data adds to now pretty widespread and compelling evidence that the housing market has come well off the boil," said Howard Archer, the chief UK and European economist with IHS Global Insight. | |
Rules | |
The Nationwide Building Society, meanwhile, said it lent £13.1bn in the six months to September 30, down £900m from the six months to March 30. | |
But pre-tax profits more than doubled to £598m as its share of the current account market rose. | |
New rules, known as the Mortgage Market Review (MMR), were introduced by the Financial Conduct Authority in April to ensure that borrowers could afford to pay back loans. | New rules, known as the Mortgage Market Review (MMR), were introduced by the Financial Conduct Authority in April to ensure that borrowers could afford to pay back loans. |
The industry expressed concern this week that the rules are prompting lenders to restrict mortgages to anyone who will still be paying off their loans into retirement. | |
Despite growing competition in retail banking, the society said it was confident of remaining a top three provider of mortgages and savings products. It had an 11.1% share of the mortgage market and 10.6% of the savings stock. | Despite growing competition in retail banking, the society said it was confident of remaining a top three provider of mortgages and savings products. It had an 11.1% share of the mortgage market and 10.6% of the savings stock. |
The core tier 1 ratio - a key measure of financial health - has risen to 17.6%, which Graham Beale, Nationwide chief executive, said underlined its position as a safe and secure financial services provider. | The core tier 1 ratio - a key measure of financial health - has risen to 17.6%, which Graham Beale, Nationwide chief executive, said underlined its position as a safe and secure financial services provider. |