Home mortgage lending slows

Mortgage lending to homebuyers continues to weaken, according to a banking industry survey of lending figures. The British Bankers’ Association (BBA) found that the number of mortgages approved for home purchases in September was 52,685, down 27% on the number approved in September 2006. It is the lowest September figure for seven years. The figures appear to support claims that the housing market is softening in response to high interest rates and the credit crunch .

The previous month’s figures show that the number of house purchase approvals in August was down 14% from the same period in 2006. The BBA’s David Dooks said that the figures indicated a weaker outlook for the mortgage market, particularly if loan supply reduces in the aftermath of the recent financial markets difficulties and borrowing costs remain at current levels.

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