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News: UK Mortgage approvals fall

Tue, 30 Nov 10

The number of mortgages approved for house purchases stood still in October at 47,185 (September 47,369), with the total lower than the previous six-month average of 48,503 and down from 57,345 a year earlier...

Bank of England figures also show October approvals for remortgaging little changed on September, at 29,275.

Last week, lenders warned that they are not expecting any significant recovery in mortgage lending in 2011, particularly as a new vetting process for mortgages could 'cement in place' restricted lending.

The Financial Services Authority is proposing new rules that would mean the responsibility for assessing whether a borrower can afford a mortgage ultimately lay with the lender.

The Council of Mortgage Lenders has already described the proposed new measures as 'flawed and impractical', suggesting that they could result in 'a range of negative, unintended outcomes'.

Surprising perhaps as one might naturally expect that the lender would like to be confident that the money loaned would be repaid.


See also: Mortgage Advice

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