Mortgages for house purchases: the facts and figures

Posted under General by Jermaine

The number of mortgages for house purchases touched a record low in May, owing to tighter lending criteria that continued to wean away homebuyers, figures indicated. Following are key facts and figures that give an idea of the prevailing mortgage market sentiment.

According to the British Bankers’ Association, its members approved only 27,968 mortgages for purchases over the month of May. This is a fall of 20 per cent since April and 56 per cent below the figure for the corresponding period last year.

The total value of house purchase loans approved (at £4.3bn) plummeted by 57 per cent over the year, well below the average for last six months that stood at £6.4bn, suggesting the mortgage market is slowing further.

Remortgaging activity, in spite of falling by almost 10 per cent since April, remained strong, the BBA noted. Borrowers continued to look around for a better deal as they neared the end of short-term deals. The value of all mortgages approved (£14.3bn) during May fell by £2bn, 31 per cent below last May’s figure.