UK Mortgage Approvals Fall in November

The number of mortgages approved for house purchases fell to a 17-month low in November, in a further sign of a housing market slowdown in the autumn.

A total of 59,029 home loans were approved for purchases during the month, according to figures from the Bank of England, below the average of 63,191 recorded over the previous six months and down by more than 22% on the 76,574 offered in January.

The seasonally adjusted figures from the Bank show that approvals fell in spring as new rules on mortgage affordability came into force, then picked up over the summer months, before dipping again in the autumn.

The rules, which require lenders to carry out tougher checks on borrowers’ incomes and outgoings before they grant a loan, were introduced to prevent a return to the sometimes reckless lending seen in the run up to the housing market peak in 2007.

As well as making it tougher for some would-be buyers to get loans, they also led to a drop in lending, as banks and building societies retrained staff and brought in new systems.

The Bank’s figures suggest that after renewed activity in early summer, the market began to slow again.

via The Guardian

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