Those seeking a new home mortgage may be better served by waiting until the housing crisis is over according to the experts. Approvals for new home mortgages are down while the rates continue to go up. Until this changes, it may be very difficult for anyone to get a new home mortgage.
British Bankers Association statistics director, David Dooks, said, “Measures of mortgage activity were lower in May as a result of tighter lending criteria and economic pressures on households. Only remortgaging business is holding up, where people need or want to take advantage of deals with other lenders. People spent more on credit cards, but repayment levels were lower than expected in May and after April’s busy month with people putting money into ISAs, personal deposits were not as strong.”
CML director general, Michael Coogan commented: “The remortgage market remains on track to meet our forecast for growth this year, demonstrating the resilience of the market despite recent bad news. However, by comparison, the next few months will remain very weak for house purchase activity for the funding reasons which are now well rehearsed. We still await first signs of the Bank of England’s Special Liquidity Scheme indirectly helping to ease the current logjam.”
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