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/7630976.stm
The article has changed 4 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| Mortgage approvals 'at new low' | Mortgage approvals 'at new low' |
| (about 2 hours later) | |
| UK mortgage lending by the major banks fell to a record low in August, with approvals for house purchases 64% lower than a year ago. | UK mortgage lending by the major banks fell to a record low in August, with approvals for house purchases 64% lower than a year ago. |
| The British Bankers' Association (BBA) said that 21,086 mortgages had been approved for house purchases, down from 58,564 in August last year. | The British Bankers' Association (BBA) said that 21,086 mortgages had been approved for house purchases, down from 58,564 in August last year. |
| The BBA said that falling property prices and the state of the economy would continue to have an impact. | The BBA said that falling property prices and the state of the economy would continue to have an impact. |
| Consumer credit rose by £0.4bn in August, the figures show. | Consumer credit rose by £0.4bn in August, the figures show. |
| "Falling property prices, economic pressures on households, tighter lending criteria and anticipation of the government's announcement on stamp duty all suppressed or delayed demand in August and will continue having an impact in the months ahead," said BBA statistics director David Dooks. | "Falling property prices, economic pressures on households, tighter lending criteria and anticipation of the government's announcement on stamp duty all suppressed or delayed demand in August and will continue having an impact in the months ahead," said BBA statistics director David Dooks. |
| Housing slowdown | Housing slowdown |
| The number of mortgage approvals for house purchases fell from 22,239 in July to the lowest figure since current figures were collected in September 1997. | The number of mortgage approvals for house purchases fell from 22,239 in July to the lowest figure since current figures were collected in September 1997. |
| The BBA data graphically highlights that housing market activity continues to be throttled by stretched affordability and tight lending conditions Howard Archer, Global Insight | |
| Approvals for remortgaging in August were 28% lower than last year, at 47,765. This was the lowest level since early 2001, the BBA said. | Approvals for remortgaging in August were 28% lower than last year, at 47,765. This was the lowest level since early 2001, the BBA said. |
| In total, net mortgage lending rose by £2.1bn in August, less than half of the average rise over the previous six months. | In total, net mortgage lending rose by £2.1bn in August, less than half of the average rise over the previous six months. |
| The BBA's members account for about two-thirds of mortgage lending and the figures reflect the sharp slowdown in the housing market. | The BBA's members account for about two-thirds of mortgage lending and the figures reflect the sharp slowdown in the housing market. |
| Mr Dooks said that speculation about a decision on stamp duty had flattened demand in August. | |
| In the first week of September, Chancellor Alistair Darling announced a year's suspension of stamp duty on properties costing up to £175,000. | |
| Howard Archer, chief UK economist at Global Insight, said that difficulty for buyers trying to obtain a mortgage continued to be an issue. | |
| "The BBA data graphically highlights that housing market activity continues to be throttled by stretched affordability and tight lending conditions," he said. | |
| Credit cards | |
| Families were repaying as much as they spent on credit cards, said Mr Dooks, signalling that people were exercising caution during the squeeze on household finances. | |
| Annual growth in credit card borrowing rose to 8.2% in August, but borrowing on overdrafts fell slightly and borrowing on unsecured loans remained subdued. | |
| Personal deposits and savings remained low in August, rising by £0.3bn following a small fall in July, the BBA said. | |
| The pressure on household finances, especially the result of food and fuel bills, has led to a pattern of weaker savings in recent months. |