UK mortgage data points to downturn
The Bank of England has today issued funding data regarding the UK mortgage market showing that mortgage approvals were down from 49,461 in May to 47,643 in June, well below initial forecasts of 49,000. Net mortgage lending growth eased to £665 million in June from £838 million in May, again well below analyst forecasts of £1 billion. There was also the revelation that UK consumers have repaid just short of £100 million of unsecured credit.
All in all, this report issued by the Bank of England today would suggest that UK consumers and UK house buyers are becoming more and more cautious regarding the UK economy. If this is the case, then we can hardly expect consumers to support both the retail market and the property market in the short to medium term without further assistance from the UK government. When you consider the UK government is currently in the process of slashing the public-sector budget and increasing taxes, then any financial assistance in the short term would appear to be a forlorn hope.
Unfortunately, the dark clouds are now beginning to gather over the UK economy and in all honesty there is very little positive news on the horizon.
Share this..
Related stories
Lloyds bank encourages mortgage overpayments
In a move which will catch the eye of many consumers in the UK Lloyds bank has revealed customers on variable mortgage rates will be able to overpay up to 20% of their outstanding mortgage loans over the next year. The idea is that more people could take the opportunity to benefit from low UK mortgage rates and effectively reduce their interest payments in the future. It is believed that up to £2...
Read MoreNegative equity to hit 2 million by 2010
The housing crash in the UK is set to see literally millions of home owners plunged into negative equity over the next years with the figure expected to peak at 2 million in 2010. Figures released by a number of charities have confirmed that in excess of 60,000 homeowners are moving into negative equity each month a figure which has frightening repercussions for the mortgage default numbers.
Read More
First-time buyer Mortgages at five-and-a-half-year high
The amount of mortgages approved for first-time buyers has risen to the highest level recorded in the last five-and-a-half years, according to the Council of Mortgage Lenders (CML). Since the recession in 2008, getting on the property ladder has been a hard task for first-time buyers, with lenders asking for higher deposits and increasing rates. However, Government schemes introduced in the las...
Read MoreHow often should you examine your mortgage arrangements?
While the vast majority of people in the UK sign up to their mortgage agreement and leave it to run its full term we are starting to see more proactive moves from those looking to cut their mortgage obligations for the future and take advantage of short-term interest-rate movements. The government investigation into the mortgage sector just a few years ago severely curtailed the practice of large...
Read MoreEquitable Life sufferers receive backing from MPs
The demise of the Equitable Life business is something of a slow and painful death for many customers who are waiting for compensation relating to their mortgage guarantee claims. The Equitable Life group collapsed in 2000 when a House of Lords ruling forced the company to honour mortgage guarantee policies which would cost the business in the region of £4 billion. However, before any policyholde...
Read More