Mortgage Lending Drops Again

The number of completed mortgages issued for house purchases fell to 53,000 in August – down more than 3000 from the previous month.

The Council of Mortgage Lenders (CML) believe sales may have reached a plateau, as many first time buyers simply can’t afford the large deposits being asked of them by most banks. More than 60% of current available mortgage offers require the buyer to put down a 25% deposit.

The total value of mortgaging, with buy-to-let included, is down 40% on last years figures.

With interest rates falling, remortgaging numbers are down.  With many homeowners on variable rates, it is becoming more cost effective for them to stay with their current mortgage provider than to shop around for better rates.

House prices have slightly risen in the past 3 months, with Halifax reporting a 2.8% jump, which is the first quarterly increase in more than 2 years. According to The Nationwide, prices have risen for 5 months in a row.