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| Version 1 | Version 2 |
|---|---|
| Mortgage market remains subdued | Mortgage market remains subdued |
| (about 2 hours later) | |
| The UK mortgage market remains subdued despite a slight recovery in April, the major banks say. | The UK mortgage market remains subdued despite a slight recovery in April, the major banks say. |
| The British Bankers' Association (BBA) figures show 38,704 new mortgages were approved for house purchases in the UK in April, up from 35,546 in March. | The British Bankers' Association (BBA) figures show 38,704 new mortgages were approved for house purchases in the UK in April, up from 35,546 in March. |
| But this is still down 39.4% compared with the same time a year ago. | But this is still down 39.4% compared with the same time a year ago. |
| The figures show a sharp rise in the number of people remortgaging, highlighting a trend of homeowners switching lenders for a better deal. | The figures show a sharp rise in the number of people remortgaging, highlighting a trend of homeowners switching lenders for a better deal. |
| Still moving | Still moving |
| "It is clear that, contrary to some reports, the mainstream mortgage market has not ground to a halt," said the BBA's statistics director David Dooks. | "It is clear that, contrary to some reports, the mainstream mortgage market has not ground to a halt," said the BBA's statistics director David Dooks. |
| The mainstream mortgage market has not ground to a halt David Dooks, BBA | The mainstream mortgage market has not ground to a halt David Dooks, BBA |
| The figures only cover the major banks, who have been able to ride the credit squeeze and have continued to offer a wider range of mortgage deals than smaller lenders. | The figures only cover the major banks, who have been able to ride the credit squeeze and have continued to offer a wider range of mortgage deals than smaller lenders. |
| The smaller banks and building societies have been putting deals on hold or withdrawn offers as lending between financial institutions remains tight. | The smaller banks and building societies have been putting deals on hold or withdrawn offers as lending between financial institutions remains tight. |
| The rise in remortgaging levels - up from 60,410 in March to 74,722 in April - could also be the effect of Northern Rock customers being encouraged to switch lenders for more competitive deals. | The rise in remortgaging levels - up from 60,410 in March to 74,722 in April - could also be the effect of Northern Rock customers being encouraged to switch lenders for more competitive deals. |
| Market share | Market share |
| The BBA said that approvals for remortgaging were "exceptionally strong" in April and would lead to the main High Street banks increasing their share of the mortgage market. | The BBA said that approvals for remortgaging were "exceptionally strong" in April and would lead to the main High Street banks increasing their share of the mortgage market. |
| Mortgage lenders are predicting a 7% fall in house prices in 2008 | |
| But approvals for house purchases continued to be well down on 2007. | But approvals for house purchases continued to be well down on 2007. |
| Mr Dooks said pressures on household finances, stalling house prices and tighter lending criteria were all cutting the demand of people wanting to move home. | Mr Dooks said pressures on household finances, stalling house prices and tighter lending criteria were all cutting the demand of people wanting to move home. |
| Annual growth in credit card borrowing also fell slightly in April, with repayments (£7.7bn) outstripping new spending on plastic (£7.4bn). | Annual growth in credit card borrowing also fell slightly in April, with repayments (£7.7bn) outstripping new spending on plastic (£7.4bn). |
| Falling behind | |
| The figures came on the day that a report by ratings agency Standard and Poor's (S&P) suggested that more than a fifth of sub-prime borrowers in the UK had fallen behind with repayments. | |
| The number of people with chequered credit histories who fell behind on repayments for more than 30 days rose from 19.4% in the final three months of 2007 to 21.7% in the first quarter of 2008. | |
| Some 10.6% of sub-prime borrowers were 90 days or more behind on repayments, the report found. | |
| S&P found the proportion of homeowners with good credit ratings - so-called "prime" borrowers - who were more than 30 days in arrears rose to 2.4% in the first quarter of 2008, up from 2.1% in the previous three months. | |
| The survey covered just under £35bn of sub-prime mortgage debt, around 80% of the total UK sub-prime market, and £250bn worth of prime mortgage debt in the UK, 20% of the UK's total mortgage debt. |