Historically May has been one of the busier months of the year when it comes to mortgage approvals with many home buyers looking to secure deals after the Easter break. However in light of the economic situation May 2008 saw a record slump in mortgage approvals with just 28,000 mortgages gaining approval during the month. This is 20% lower than April but an enormous 56% lower than the May 2007, causing alarm bells to ring across the UK mortgage industry.

The double whammy of reduced funding in the money markets and a genuine lack of buyers in the housing market has seen demand and supply slip gradually throughout 2008. While the corporate activity at Bradford and Bingley has given some cheer to the market there are real concerns that the sector could yet be in for another serious slump.

Mortgage arrears look set to creep higher during the remainder of 2008 and 2009 and this combined with the ever rising cost of living looks set to plunge many of the UK population into serious financial difficulties. Quite what assistance the banks or the government will be able to offer those struggling remains to be seen but the Bank of England do not seem in an awfully helpful mood in the short term.

»» Return to Homepage

»» Full Mortgages News Archive

»» Woolwich™ Mortgages