UK mortgage approvals fell in February
The Bank of England has confirmed that UK mortgage approval numbers fell in February to 47,094, well down on the six-month average of 55,130 and also down on the 48,099 approved in January. While this is obviously a bitter blow to the UK property market, when you consider the forthcoming general election and the doom and gloom surrounding the UK economy at the turn of the year, it is perhaps understandable that many people have put off what would be the biggest investment of their lives.
While remortgages and mortgages for other purposes increased in February, compared to January, there is growing concern about the fragile nature of the property market upturn. If it is, as many suspect, simply people holding off until the election is over and they know the identity of the next government, then we should see a boost in the short to medium term. However, if the UK was to lose its Triple-A credit rating we could see further downside in the UK property market and also the UK stock market.
In many ways the UK economy is at a U-turn and could turn back on itself into a downward spiral or push ahead and into the boom times of years gone by. It is very difficult to call the short-term direction of the UK economy because there are so many uncertainties surrounding the UK at the moment.
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