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| Version 2 | Version 3 |
|---|---|
| Mortgage approvals still falling | Mortgage approvals still falling |
| (20 minutes later) | |
| Mortgage approvals dropped again in October, suggesting that house sales and prices have further to fall. | Mortgage approvals dropped again in October, suggesting that house sales and prices have further to fall. |
| Bank of England figures show that just 32,000 mortgages were approved, 1,000 fewer than in the previous month. | Bank of England figures show that just 32,000 mortgages were approved, 1,000 fewer than in the previous month. |
| The number of mortgages approved, but not yet lent, is a good indicator of medium term trends in lending. | The number of mortgages approved, but not yet lent, is a good indicator of medium term trends in lending. |
| The UK housing market has already seen prices fall by between 10% and 15% in the past year with sales down by more than half. | The UK housing market has already seen prices fall by between 10% and 15% in the past year with sales down by more than half. |
| Unprecedented situation | Unprecedented situation |
| Approvals have slumped by 74% in the past year, under the impact of the global credit crunch which has forced banks and building societies to ration their mortgage lending. | |
| With confidence in the market so restrained, homeowners are choosing to stay put rather than move, while first-time buyers continue to wait for further falls in prices Adrian Coles, Building Societies Association | With confidence in the market so restrained, homeowners are choosing to stay put rather than move, while first-time buyers continue to wait for further falls in prices Adrian Coles, Building Societies Association |
| In June 2007 approvals stood at 115,000, and by October last year were already sliding, hitting 88,000 that month and falling much further since then. | In June 2007 approvals stood at 115,000, and by October last year were already sliding, hitting 88,000 that month and falling much further since then. |
| For the past four months they have hovered between 32,000 and 33,00 each month, suggesting that lending for house purchase may have reached its bottom. | For the past four months they have hovered between 32,000 and 33,00 each month, suggesting that lending for house purchase may have reached its bottom. |
| Sir James Crosby, the former head of the UK's biggest mortgage lender HBOS, has warned the government this month that lending next year for home loans may fall even further. | Sir James Crosby, the former head of the UK's biggest mortgage lender HBOS, has warned the government this month that lending next year for home loans may fall even further. |
| That could reach the unprecedented situation, he warned, of no fresh lending at all in 2009 unless the government took steps to reinvigorate the ability of banks to raise fresh funds to lend to home buyers. | That could reach the unprecedented situation, he warned, of no fresh lending at all in 2009 unless the government took steps to reinvigorate the ability of banks to raise fresh funds to lend to home buyers. |
| Modest | Modest |
| The value of mortgages loaned during October was almost 70% down from September to £459m - the second lowest figure on record and only 6% of the level just one year ago. | The value of mortgages loaned during October was almost 70% down from September to £459m - the second lowest figure on record and only 6% of the level just one year ago. |
| Lending by building societies rose slightly, for the second month in a row, after shrinking during the summer months. | Lending by building societies rose slightly, for the second month in a row, after shrinking during the summer months. |
| But Adrian Coles of the Building Societies Association (BSA) said the improvement had been only modest. | But Adrian Coles of the Building Societies Association (BSA) said the improvement had been only modest. |
| "With the depressed state of the housing market, it is no surprise that mortgage lending by societies remains low, albeit slightly improved in September," he said. | "With the depressed state of the housing market, it is no surprise that mortgage lending by societies remains low, albeit slightly improved in September," he said. |
| "With confidence in the market so restrained, homeowners are choosing to stay put rather than move, while first time buyers continue to wait for further falls in prices." | "With confidence in the market so restrained, homeowners are choosing to stay put rather than move, while first time buyers continue to wait for further falls in prices." |