Mortgage approvals for April fall from 2007

Posted 2008-05-27

The number of mortgage approvals in the UK remains low, according to recent research.

A report by the British Bankers Association (BBA) has highlighted that the uncertainty regarding property values and few available attractive loans has reduced the demand for property – making April the second weakest month on record for mortgage approvals.

The number of approvals rose to 38,704, a slight improvement from Marchs record low of 35,546, but 40 per cent lower than the same time last year.

Howard Archer, chief UK economist at Global Insight, told the Guardian: "Despite Aprils modest rise in mortgage approvals, the BBA data is still very weak and indicates that house buying remains under severe pressure from the damaging combination of stretched affordability and tight lending conditions."

However, the report showed that there is an active re-mortgage market, with some 150,000 loans approved last month.

In related news, recent statistics from the Council of Mortgage Lenders show that mortgage lending in April fell by eight per cent compared with the same month last year.

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