New Home Owners And Snagging Forum
Home Owners => Mortgages and Insurance => Topic started by: Philofacts on May 31, 2011, 07:34:21 am
-
the number of mortgages approved hit a new low in April. The Bank of England figures for mortgage lending and consumer credit show that only 45,166 new mortgages were approved, the lowest April figure since Bank of England began records in 1992.
It would appear Britain is paying down debts built up over the last decade. The figures show a net repayment of consumer borrowing.
Many city experts fear that the weak lending figures could signal that the recovery will be slower than hoped for, whilst others say this is good as it shows the addiction to debt is coming under control.
-
That's right. 45,000 new loans represents a fall of 8% on the year.
Compared to the peak in November 2006 of 130,000 new loan approvals puts the latest figures into perspective.
-
This is has been an ongoing trend. People simply do not have the credit that they had before the economic downturn. I believe that even if they do, they are still scared to lose their job and have a mortgage payment to deal with. However, I think that after these individuals create a debt elimination plan, we will see an uptick again. This potentially could be the long term increase we 50 years ago when people were looking for houses they truly could afford and putting down 20%!
-
I am not sure that people could afford a new home more easilly 50 years ago.
From old TV programmes (Dad's Army) , it would seem you needed to have a meeting with a bank manager just to get a small loan for a car!
If people are being more sensible about debt it wont be a bad thing in the long run.