Mortgage Approvals at 3 Year Low – Repossessions Rise

From BBC News 29th November

The property market is showing signs of slowing down, analysts say.

The number of mortgage approvals has fallen to its lowest level for nearly three years, says the Bank of England.

In October there were 88,000 new mortgage approvals, down from 100,000 in September and 128,000 a year ago, the Bank said in a report.

The figures suggest that the property market is slowing down quickly, under the impact of higher interest rates.

Earlier, lender the Nationwide said house prices saw their biggest monthly fall for 12 years last month.

Mortgage approvals have been falling steadily since the start of the year.

But October’s number was the lowest since February 2005 and represents a slump of 31% from the same month last year.

The fallout from this falling approval rate is affecting not just those who need to remortgage with sub prime lenders, but also many amateur buy to let landlords seduced by years of press and TV coverage into thinking Buy to Let can be an easy way to make money.

If landlords get repossessed, then there will be more tenants evicted by lenders, and rents will rise to record levels as the source of rental accomodation dries up.

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