Mortgage lending levels down by 70%, Bank report reveals

30 July 2008

The number of mortgages approved by lenders last month represented a 70 per cent year-on-year drop in comparison to the same month in 2007, the Bank of England has confirmed.

Coming soon after the Council of Mortgage Lenders reported that borrowing for home purchases is now near to an all-time low, new figures from the Bank support the idea that many Brits are now unable to find the money to help finance a move up the property ladder.

The statistics show that the number of mortgages approved by UK lenders fell by 69 per cent over the 12 month period, while June's total of 36,000 also represents a 12 per cent fall on the previous month.

Howard Archer, analyst at Global Insight believes that it will take some time for the situation for would-be buyers to improve.

"Yet more very disturbing mortgage data that heightens concerns over the potential depth and length of the housing market correction," he explained.

"The Bank of England data graphically highlights that housing market activity continues to be throttled by stretched affordability and tight lending conditions."

Anyone having a hard time taking a step up the property ladder could benefit from safe storage solutions until they can find the necessary finance.


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