Rate of mortgage approvals falls to its lowest level since 2011

Many people might have been thinking that the situation for people looking for a mortgage to purchase was improving, however, latest figures that have been released by the Bank of England have shown that the rate of mortgage approval has fallen to its lowest point since last year.

The recent report showed that the number of approvals has fallen significantly, and that it began even before the end of the concession on stamp duty which finished just a couple of months ago. In February it is estimated that there were nearly 50,000 mortgage approvals with a value of over £7 billion, which is significantly fewer than the number in January, which was closer to 60,000. The number of approvals in January was recorded as the highest number of approvals for two years.

These figures have followed concerns that estate agents and lenders were rushing buyers through in order to take advantage of the relief on stamp duty. Now that the duty has been reinstated it is expected that over the coming months the number of mortgage approvals is going to fall further. A report that was issued by Nationwide has shown that house prices fell on average across the country of one percent during March.

An economist from IHS Global Insight, Howard Archer, has stated, “At the end of 2011 we saw the number of mortgage approvals going through an increase, however it seems that because of the stamp duty relief being taken away, buyers are running into trouble again and are finding it more difficult to find mortgages suited to them.” Additionally, the number of people taking up consumer loans increased markedly in the same month suggesting further economic troubles.